SEC Appeals Dismissal of Suit Over Morgan Keegan ARS Practices

The Securities and Exchange Commission Aug. 26 told the U.S. District Court for the Northern District of Georgia that it has appealed to the U.S. Court of Appeals for the Eleventh Circuit the dismissal of an enforcement action against Morgan Keegan & Co. Inc. over the firm’s allegedly misleading auction-rate-securities practices (SEC v. Morgan Keegan & Co. Inc.).

Earlier this year, the district court concluded that beyond four customers who complained that they were misled about the liquidity risks of the instruments, the commission presented no admissible evidence that the concern misled other customers (126 DER EE-4, ...