June 3, 2010
Labaton Sucharow Announces New Deadline To File Motions For Appointment As Lead Plaintiff In The Class Action Lawsuit On Behalf Of Investors In The RMK Advantage Income Fund, RMK Strategic Income Fund, RMK High Income Fund, & RHY Multi-Sector High Income Fund
NEW YORK (June 03, 2010) — Labaton Sucharow LLP announces that Judge Samuel H. Mays, Jr. of the U.S. District Court for the Western District of Tennessee, Memphis Division, issued an order on June 2, 2010 setting July 2, 2010 as the deadline for investors in the four Regions Morgan Keegan closed-end funds listed below to file motions for appointment as Lead Plaintiff. Labaton Sucharow filed a class action lawsuit on May 19, 2010 before Judge Mays, Jr. on behalf of all persons who purchased or otherwise acquired shares in the following closed-end mutual funds (collectively, "Funds") between June 6, 2005 and July 14, 2009:1
- RMK Advantage Income Fund ("RMA")
- RMK Strategic Income Fund ("RSF")
- RMK High Income Fund ("RMH")
- RHY Multi-Sector High Income Fund ("RHY")
The complaint is styled Palmour v. Morgan Keegan & Co., No. 10-02380-SHM-dkv (W.D. Tenn.). Additional information about the case can be found in the consolidated docket, In re: Regions Morgan Keegan Securities, Derivative, & ERISA Litigation, No. 07-02830-SHM-dkv (W.D. Tenn.).
If you have lost in excess of $200,000 on purchases of any of the Funds and would like to consider serving as Lead Plaintiff, or have any questions about the lawsuit, please contact Stefanie J. Sundel, Esq., of Labaton Sucharow at 888-753-2796, or via email at firstname.lastname@example.org.
Lead Plaintiff motion papers must be filed with the U.S. District Court for the Western District of Tennessee no later than July 2, 2010. A Lead Plaintiff is a court-appointed representative for absent class members. You do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
The complaint is seeking to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and names as defendants Morgan Keegan & Co., Inc., Morgan Asset Management, Inc., Regions Financial Corp., RMK Advantage Income Fund, Inc., RMK Strategic Income Fund, Inc., RMK High Income Fund, Inc., RHY Multi-Sector High Income Fund, Inc., Carter E. Anthony, Allen B. Morgan, Jr., Joseph Weller, James Stillman R. Mcfadden, Archie W. Willis, III, Mary S. Stone, W. Randall Pittman, J. Kenneth Alderman, J. Thompson Weller, James C. Kelsoe, Jr., David H. Tannehill, Jack R. Blair, Albert C. Johnson, Charles D. Maxwell, and PricewaterhouseCoopers, L.L.P. (collectively, "Defendants").
The complaint alleges that Defendants concealed the Funds’ investments in poor-quality, asset-backed securities ("ABS"), leveraged many times over by complex capital structures. Defendants affirmatively misrepresented that the securities it held in the Funds were corporate bonds and preferred stocks. Contrary to the Company’s assertions that investors in the Funds suffered losses as a result of a "mortgage meltdown," the complaint alleges the Funds collapsed because they held concentrated holdings of low-priority tranches of ABS. Defendants did not fully or accurately inform investors in the Funds of the risks inherent in the subordinated ABS tranches until after some $1 billion in losses were incurred. Defendants also misled investors by repeatedly comparing the performance of the Funds to the Lehman Brothers Ba U.S. High-Yield Index, which contained only corporate bonds, wholly distinct from ABS. Defendants’ conduct has prompted regulatory enforcement actions or investigations by at least five state regulators, FINRA, and the SEC. On July 9, 2009, the SEC served Regions Financial Corp., Morgan Keegan’s parent company, with a Wells Notice, which notified Regions that the SEC would commence an enforcement action.
Investors are encouraged to investigate the claims of the lawsuit before deciding to file a motion for appointment as Lead Plaintiff. Investors may contact the clerk of the court, provide the aforementioned case information, and request a copy of the complaint. Investors may also view a copy of the complaint online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
Plaintiff is represented by the law firm of Labaton Sucharow LLP. More information about the Firm is available at www.labaton.com.
1 A related action defines the Class Period as December 6, 2004 through February 6, 2008.