On May 2nd, the Eleventh Circuit vacated and remanded the district court's entry of summary judgment dismissing the SEC's enforcement action against Morgan Keegan. The SEC alleges that Morgan Keegan's brokers and marketing materials misrepresented the risks associated with auction-rate securities. The trial court entered summary judgment, holding that the alleged misrepresentations and omissions were not material. Reversing, the Eleventh Circuit holds that the materiality test requires the court to consider all the information available, including private communications between defendant's brokers and investors. And here, although Morgan Keegan produced adequate written disclosures, there is no evidence that Morgan Keegan directly gave customers these written disclosures and the disclosures' distribution was weak or non-effective. SEC v. Morgan Keegan & Company, Inc.