Morgan Keegan continues to suffer fallout from its embattled funds.

This time, the firm has been hit with a $1.4 million fee from industry regulator Finra.

According to an award document from the regulator, Morgan has to make the payout to Lawrence Dale and LBD Holdings 2007 to settle damages related to losses of the RMK Intermediate Bond Fund-A.

Dale had invested $16,307,036.86 in the fund, while a limited partnership owned by Dale invested a further $276,558.63.

In the original complaint, which had been filed Oct. 4, 2010, Dale had sought $4,300,132 in damages. The $1.4M included $850,811.00 in damages as well as $400,000 in attorney fees, in addition to other fees and costs related to the filing as well as interest.

This is only the latest legal headache to hit Morgan as a result of the implosion of its funds, which imploded during the financial crisis and lost up to 80 percent of its value. Morgan had been accused by regulators of fraud and overestimating the value of these funds and has had to pay $210 million to settle the charges.

Earlier this month, the SEC filed charges against eight former directors of the boards of five Morgan funds.

The firm did not respond to requests for comment from MFWire.  

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