In an upset for the Securities and Exchange Commission, the U.S. District Court for the Northern District of Georgia June 28 dismissed the agency’s enforcement action against Morgan Keegan & Co. Inc. over its allegedly misleading auction-rate-securities practices (SEC v. Morgan Keegan & Co. Inc.).
Writing for the court, Judge William S. Duffey Jr. said that beyond four customers who complained they were misled about the liquidity risks of the instruments, the commission “simply has not presented any admissible evidence that Morgan Keegan misled other customers.”
“We are considering whether to appeal the court’s ruling,” SEC spokesman John ...
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