Former Chicago Bulls basketball player Horace Grant has won an arbitration case against a mutual fund he claimed misrepresented the risk levels of the bond funds it sold him.
Morgan Keegan & Co. must pay Grant $1.46 million for losses he suffered in mutual funds that were heavily invested in complex securities known as collateralized debt obligations that were tied to residential mortgages.
His attorney, Andrew Stoltmann of Chicago, said the mutual funds lost 90 percent of their value in about 16 months after the housing market tanked in 2007.
Grant was seeking more than $1.5 million in damages from Memphis-based Morgan Keegan in a complaint he filed in March 2008. The Financial Industry Regulatory Authority Inc. published the results of the arbitration on Friday.
A Morgan Keegan spokeswoman Kathy Ridley says the firm disagrees with the outcome.
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