by Tre Baker
Posted 10/31/2012 02:22 pm
Updated 7 months ago
Morgan Keegan may be feeling like the Phoenix Suns today after losing a $1.45 million court appeal from the U.S. 9th District Court of Appeals to former basketball star Horace Grant.
The settlement comes from a three-year battle Grant had with Morgan Keegan, the investment bank formerly based out of Memphis that became the target of many lawsuits after its investors lost money on funds backed by subprime mortgage debt. Plantiffs in the lawsuits claimed that the investments by Morgan Keegan had been labeled as "conservative," a claim the firm denied.
The Memphis Commercial Appeal has more on how Grant got his money back:
Grant won the $1.45 million in September 2009 from a Financial Industry Regulatory Authority (FINRA) arbitration panel. He argued Morgan Keegan failed to reveal that the investments they sold him were highly speculative and backed by subprime mortgage debt.
Morgan Keegan challenged the judgment in federal court, lost and appealed.
Arkansas Business reported in 2009 on numerous suits brought against Morgan Keegan by Arkansas investors. Results had varied then with some getting their money back, some getting partial amounts back and some still waiting to hear from the courts.
According to a lawyer involved in the lawsuits, most of the claims came from people in Alabama, Tennessee and Arkansas.
Grant entered the NBA in 1987 and played side-by-side with Scottie Pippen and Michael Jordan through the Chicago Bulls' first three championships. He later also got a ring in 2001 with the Los Angeles Lakers.