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Miss. Gets $100 Million Settlement

By Jeffrey Hess | Published 22 Apr 2013 02:34pm | comments

The Federal Securities and Exchange Commission is announcing plans to distribute $100 million in from a major legal settlement to Mississippians.

The money is the second half of a $200 million settlement with the investment firm Morgan-Keegan.  The state reached the agreement with the company in 2011 because it failed to disclose risks associated with certain investments and presenting misleading marketing materials to investors. 

“For two years, the SEC ignored the pleas of investors to release this money.  They desperately need their settlement funds,” said Secretary of state Delbert Hosemann.  “It is beyond time for the federal agency to allocate the funds and bring some closure to Morgan Keegan investors.”

Between 2007 and 2008, seven Morgan Keegan bond funds that were touted as safe and conservative, collapsed and lost more than a billion dollars.

In all, Mississippians lost $78 million when the fund nosedived.

The state has already distributed the first 100-million dollars.

There is a 60-day window for public comment on the SEC’s proposal. Details can be found here: http://www.sec.gov/litigation/fairfundlist.htm#morganassetmgmt.

 

 

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