On December 15, 2010, Lion Fund, L.P., Dr. J. Samir Sulieman, and Larry Lattimore were appointed Lead Plaintiffs, and Labaton Sucharow LLP was approved as sole Lead Counsel, in In re Regions Morgan Keegan Closed-End Fund Litigation, No. 07-CV-02830 (W.D. Tenn), on behalf of purchasers of the publicly traded shares of four closed-end mutual funds: RMK High Income Fund, Inc. ("RMH"); RMK Strategic Income Fund, Inc. ("RSF"); RMK Advantage Income Fund, Inc. ("RMA"); and RMK Multi- Sector High Income Fund, Inc. ("RHY") (collectively, the "Funds") between June 24, 2003 and July 14, 2009 (the "Class Period"). 

On February 22, 2011, Lead Plaintiffs filed a Consolidated Amended Complaint asserting claims under Sections 11, 12, and 15 of the Securities Act of 1933 on behalf of purchasers of RHY, and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder, on behalf of purchasers of all of the Closed-End Funds.  

The Complaint alleges that the Funds and other named Defendants fraudulently overstated the values of portfolio securities and reported false Net Asset Values ("NAVs"). In addition, the Funds allegedly concentrated between 65%-70% of their portfolio securities in subprime mortgage-backed securities or asset-backed securities ("ABS") in violation of their stated restriction against investing more than 25% of portfolio securities in the "same industry." The Funds also allegedly misclassified more than $240 million of ABS—18% of the Funds' gross initial market capitalization—as "corporate bonds" and "preferred stocks" so as to hide their same industry violations and to appear more diversified than they actually were. Further, the Funds' chosen benchmark index mislead investors because it tracked solely corporate bonds and preferred stock and not ABS or MBS. Finally, the Funds are alleged to have falsely touted their professional portfolio management by "one of America's leading high-yield fund managers" when, in fact, portfolio securities frequently were purchased blindly without the exercise of basic due diligence. 

Defendants moved to dismiss on April 13, 2011. Lead Plaintiffs filed their brief in opposition to the motions on June 17, 2011, and briefing on the motions will be completed in early August.