The Memphis based broker Morgan Keegan is under fire for allegedly selling toxic debt to seniors. Multiple lawsuits have been filed charging the firm with failing to disclose to investors the risks of seven mutual funds that were stuffed with risky subprime debt. Many of the people that invested in these funds were seniors who were advised that the funds were conservative investments. Instead of being conversative, the funds were extremely risky. In fact, the funds have lost 50 to 86% over the last year. These dramatic losses have decimated the retirement accounts of many seniors. It appears that these investors should have never been sold these funds and it further appears that these funds failed to disclose the risks. While all investments carry risks, they must be properly disclosed. Hopefully through litigation, the investors will be reimbursed their losses. If you have invested in a mutual fund that was labled conservative and have suffered considerable losses due to the funds improper exposure to subprime debt, feel free to contact our lawyers today.
