On March 2nd, the federal district court overseeing the multi-district litigation involving the collapse of the Regions Morgan Keegan fixed income bond funds remanded to state court an individual plaintiff's lawsuit which alleged only violations of state statutory and common law duties. It rejected defendants' argument that because federal regulations govern the funds, plaintiff's allegations about the funds' lack of liquidity and diversification call into question the federal standards governing those requirements. Instead, the court found that defendants' arguments are defenses upon which federal question jurisdiction cannot be based. Kramer v. Regions Bank.