#USA #New York #Franklin Resources #Pomerantz Law #Investment Fraud

Pomerantz Law Firm Investigates Claims on Behalf of Franklin Resources, INC.

In recent developments, Pomerantz LLP has initiated investigations concerning potential claims on behalf of investors of Franklin Resources, INC. (NYSE: BEN). This scrutiny follows alarming reports which suggest that the company's management may have engaged in fraudulent activities in breach of securities law.

The inquiry mainly focuses on allegations of illegal business practices and securities fraud allegedly involving certain executives and board members. A significant incident occurred on August 21, 2024, when the company's subsidiary, Western Asset Management Company, made a startling announcement regarding the leave of absence of its co-Chief Investment Officer, Ken Leech. This event transpired after Mr. Leech reportedly received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating potential violations of securities regulations.

Bloomberg also reported on the same day that federal prosecutors are probing claims that a Western Asset Management executive might have engaged in preferential allocation practices, commonly known as 'cherry-picking.' Following this bombshell news, Franklin’s stock suffered a decline, plummeting by $2.84 per share, a staggering drop of 12.56%, closing at $19.78 per share.

The situation escalated further when, on November 25, 2024, the SEC officially charged Ken Leech with engaging in fraudulent activities. The charges included allegations that he executed a multi-year scheme that favored certain portfolios at the expense of others by allocating advantageous trades to select accounts while disadvantaging others—a clear case of cherry-picking. This led to another dip in Franklin’s stock price, which dropped $0.51, or 2.24%, to settle at $22.21 per share by the end of November 26, 2024.

Pomerantz LLP is well-regarded in the field of corporate and securities class litigation, seeing its founding back in the time of Abraham L. Pomerantz, who was influential in establishing the practices used today in securities class action lawsuits. With a rich history spanning over 85 years, the firm has dedicated itself to representing victims of corporate misconduct and securities fraud, achieving substantial recovery awards for class members.

Danielle Peyton, a representative of Pomerantz LLP, urges investors who feel they have been affected by the recent developments at Franklin Resources to reach out. Such stakeholders can contact her directly via email at [email protected] or by phone at 646-581-9980, ext. 7980. The firm continues to fight for the rights of investors, particularly as this case unfolds and more information becomes available. The results of this investigation may have far-reaching implications for Franklin Resources and its investors, making it a situation worth monitoring closely.

For further updates, stay tuned to the news as this situation develops. Investors are advised to remain vigilant and proactive in seeking information related to their investments, especially when faced with potential legal complications as seen in this high-stakes investigation involving Franklin Resources, INC.