Morgan Keegan settled a Complaint filed by the Securities and Exchange Commission, alleging that some of the research it published was paid for by other investment banks that were representing the companies that were being researched. Thus, while the research would have appeared neutral to the typical investor, it was, in fact, paid for. For example, in March 2002, Morgan Keegan received a $50,000 payment from an investment bank in connection with the sale of stocks in THQ, Inc. Morgan Keegan had previously issued research reports about THQ stock, but failed to disclose the $50,000 payment. The full text of Morgan Keegan’s settlement with the SEC in connection with this and other paid research that it did not disclose can be found here.
