Landers v. Morgan Asset Management, No. 2:08-cv-02260-SHM-dkv (W.D. Tenn).
This action is brought as a shareholders’ derivative action. It was filed against the Morgan Keegan Defendants on behalf of the Morgan Keegan Funds and its investors on March 28, 2008, in Tennessee state court. The Morgan Keegan Defendants removed the case to federal court and Plaintiffs filed an amended complaint on October 13, 2009. The complaint alleges breach of contract, breach of fiduciary duty, negligence, and violation of the Maryland Securities Act, among other claims.
December 2010: On December 6, 2010, the court preliminarily approved the agreement outlined in the MOU.
November 2010: On November 30, 2010, the new board of directors submitted a status report to advise the court that it had reached a Memorandum of Understanding (MOU) between the Funds and the derivative Plaintiffs. Under the terms of the MOU, judgment would be entered against the Funds on the Section 11 claim against them in the federal securities law class action. If the court approves the MOU, derivative plaintiffs' counsel would represent the Funds in pursuing its claims. The judgment would place the putative settlement class in the position of a judgment creditor of the Funds.
September 2010: The Court issued an Order on September 24, 2010 denying Defendants’ motion to dismiss. The Court also stayed the action pending the court's receipt of a response from the board of directors regarding the boards' investigation and position on the pending lawsuit. The board of directors had until November 30, 2010 to respond.
December 2009: On December 15, 2009, the Morgan Keegan Defendants filed motions to dismiss the Complaint. Plaintiffs opposed these motions.