Morgan Keegan to Pay $62M to Settle Closed-End Suit


Joel H. Bernstein Discusses $62 Million Settlement with Morgan Keegan

U.S. district court judge Samuel Mays appointed Labaton Sucharow lead counsel for several class action suits involving the closed-end funds in December 2010. The first cases were filed in December 2007, says Joel Bernstein, partner at the law firm. Bernstein anticipates there will be a hearing in January during which Mays will consider approving the settlement. If Mays does not approve the settlement, the case will continue, he says. Plaintiffs also may challenge the settlement.

Bernstein’s firm estimates 500,000 notices will be sent to plaintiffs if the settlement is finalized. Bernstein says he anticipates distribution of the settlement by the end of 2013 if it is approved. Class action plaintiffs in the $62 million settlement also will be eligible for distributions from the settlement with regulators, Bernstein says.