Pomerantz Law Firm Launches Investigation for Franklin Resources Investors Amid Concerns of Securities Fraud

Pomerantz Law Firm Investigates Franklin Resources, Inc.

As reports circulate about alleged malpractice at Franklin Resources, Inc. (NYSE: BEN), the Pomerantz Law Firm has commenced an investigation aimed at protecting the interests of investors. The scrutiny follows alarming news regarding the company's business practices, raising serious concerns over potential securities fraud.

On August 21, 2024, a pivotal press release from Franklin's subsidiary, Western Asset Management Company, disclosed that co-Chief Investment Officer Ken Leech was placed on leave after receiving a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This development prompted renewed focus on allegations surrounding Leech's actions, as media reports indicated a federal investigation into accusations of "cherry-picking". This practice involves favoring specific accounts when allocating winning trades, contrasting sharply with the treatment of less favorable accounts.

As a direct consequence of this news, Franklin Resources’ stock prices experienced a sharp decline, falling $2.84 per share or a staggering 12.56%, closing at $19.78. The implications were significant, not just for Franklin but for stockholders who may have been misled about the company's operational integrity.

Further complicating matters, on November 25, 2024, the SEC formally charged Ken Leech with fraud, claiming he actively participated in a multi-year scheme focused on misallocating trades. The scandal resulted in an additional stock price drop of $0.51 or 2.24%, bringing the closing price to $22.21 the following day. These developments highlight the serious nature of the allegations and the potential for significant financial repercussions for investors.

Pomerantz LLP, which has established a reputation in navigating corporate and securities litigation, is reaching out to impacted shareholders. Danielle Peyton, an attorney with the firm, is guiding the investigative efforts and encourages stakeholders who believe they have been harmed to reach out to her directly. This initiative forms part of Pomerantz's broader commitment to championing the rights of investors who may face challenges due to corporate misconduct.

Founded by the distinguished attorney Abraham L. Pomerantz, the firm has a legacy spanning over 85 years in class action representation, securing billions in damages verdicts for investors. Shareholders of Franklin Resources who feel wronged are urged to join the proceedings to seek restitution for potential damages linked to these allegations. Those interested can get in touch with Pomerantz LLP for additional details on how to participate in the potential class action lawsuit.

In conclusion, the investigation by Pomerantz is not only pivotal for investor protection but also serves as a reminder of the necessity for transparency and accountability in corporate governance. As these events unfold, it remains essential for shareholders to remain informed and vigilant about the evolving situation concerning Franklin Resources, Inc.

For more information, investors can contact Danielle Peyton at [email protected] or call 646-581-9980, extension 7980.