WASHINGTON — The Securities and Exchange Commission may appeal a recent federal court decision tossing out an auction-rate securities case the agency brought against Memphis-based Morgan Keegan & Co.

In a 31-page opinion released Tuesday, Judge William S. Duffey Jr. of the U.S. District Court for the Northern District of Georgia granted summary judgment to Morgan Keegan, saying the firm’s failure to predict the ARS market’s collapse did not rise to the level of securities fraud.

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