Page Featured In Article Addressing Subprime Litigation Involving Morgan Keegan Bond Funds And Bear Stearns Hedge Funds

Page Perry Senior Partner J. Boyd Page was featured in a Fulton County Daily Report article entitled “Local Firms Suit Up for Subprime” by Meredith Hobbs on December 10, 2007. The article describes how Atlanta-based Page Perry is collaborating with three other law firms outside the Southeast to help investors recover losses in funds that had been promoted as safe but were actually laden with risky subprime debt.

The subprime mess has exploded, but few firms have the expertise and resources to handle the litigation on the investors’ side. Mr. Page explained that the Page Perry coalition – a team of 26 attorneys at four law firms – provides the resources needed for the complex litigation. The other firms include Maddox, Hargett & Caruso of Indianapolis, Cleveland and New York; Aidikoff, Uhl & Bakhtiari of Beverly Hills, Calif., and David P. Meyer & Associates of Columbus, Ohio. The only other law firm mentioned in the Daily Report article specializes in class actions. At the time of the article, the Page Perry coalition had filed arbitrations against Morgan Keegan and Bear Stearns. Similar actions are in the pipeline.

“These are pretty symbolic of what is obviously a very serious problem,” said J. Boyd Page of Page Perry. “We’ve gotten tons of phone calls over the last couple of weeks from a lot of people in very similar situations.” “I really started following subprime about 15 months ago,” Page said. “Now I have 12 notebooks full of documents and another 10 or 12 boxes full.”

Mr. Page said the four firms discussed joining forces last year because “we felt like this subprime situation was getting ready to explode when, suddenly, over the summer months, it did explode.”

The case against Morgan Keegan is being brought on behalf of the Indiana Children’s Wish Fund, which gives dying children a final wish. The Wish Fund lost almost $50,000 in two months in a Morgan Keegan Bond Fund. The charity had invested donations in CDs and money market funds at Regions Bank for years when a Morgan Keegan broker recommended the Regions Morgan Keegan Select Intermediate Bond C fund as a safe alternative. Regions Banks and Morgan Keegan are subsidiaries of Regions Financial Corp. The Wish Fund invested about $223,000 in the bond fund and lost about $48,500, enough money to grant wishes to 10 children.

The arbitration against Bear Stearns is being brought on behalf of a fund manager to recover $1 million that was invested in “the Bear Stearns High Grade Structured Credit Strategies Enhanced Leverage (Overseas) Fund.” The fund was heavily invested in CDOs and other mortgage-backed securities containing subprime debt. Bear Stearns informed investors that the fund was worthless and would be shut down in July. The Wall Street Journal estimates that the Fund lost as much as $1.6 billion.