An U.S. appeals court has upheld a $1.45 million arbitration award in favor of retired NBA basketball player Horace Grant, who sought reimbursement for losses from risky bond funds that were marketed as safe.
The U.S. Court of Appeals for the Ninth Circuit, according to an unpublished decision, rejected claims by Grant’s former brokerage, Morgan Keegan, that arbitrators in the case might have been biased, prejudged the outcome or exceeded their power.
It was the second big loss in less than a week for Morgan Keegan, a unit of Raymond James Financial Inc. Earlier this week, another appeals court ruled in favor of investors in a $9.2 million award. In each case, investors lost money after investing in a group of risky bond funds.