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Embattled Expert Witness Prevented from Joining Case Against Morgan Keegan

March 28, 2012

We’ve previously told you about the troubles prominent expert witness Craig McCann has faced against brokerage firm Morgan Keegan.  As a reminder, in September a federal judge ruled that McCann gave a fraudulent testimony against the firm.  Well, late last week a district court judge ruled that McCann will not be allowed to become a party in a case against Morgan Keegan.  According to a recent Thomson Reuters article,

Houston U.S. District Court Lynn Hughes recently found that Craig McCann was “only a witness” and had “no legally protectable interest” in proceedings that led to overturning a $9.2 million securities arbitration ruling against the Memphis-based brokerage.

McCann has been fighting the declaration that stated his earlier testimony was fraudulent and has stated that:

he was unaware of those proceedings and could not defend himself against a devastating conclusion that has damaged his reputation and his business, Fairfax, Virginia-based Securities Litigation & Consulting Group Inc.

The article goes on to note:

The opinion by Hughes, dated March 19 and filed last Thursday, leaves unresolved the question of whether the judge’s original ruling that McCann’s testimony was fraudulent, along with other factors, were an appropriate basis for overturning the 2010 arbitration ruling.

That $9.2 ruling was the largest against the brokerage by a Financial Industry Regulatory Authority arbitration panel for losses tied to troubled bond funds that became the subject of a $200 million civil regulatory fine.

According to McCann’s lawyer, John Clay of Ajamie LLP in Houston, McCann is considering his options for further legal action.

 

Source: “Court blocks witness from joining Morgan Keegan case”. Thomson Reuters. 26 March 2012. http://newsandinsight.thomsonreuters.com/Legal/News/2012/03_-_March/Court_blocks_witness_from_joining_Morgan_Keegan_case/

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