Pomerantz Law Firm Investigates Allegations Against Franklin Resources Amid SEC Scrutiny

Pomerantz Law Firm Investigates Franklin Resources, INC.

Pomerantz LLP is currently looking into claims from investors against Franklin Resources, INC. (NYSE: BEN), highlighting serious concerns about potential securities fraud and unlawful business practices involving the company and its executives.

This inquiry comes on the heels of significant news regarding Franklin's subsidiary, Western Asset Management Company. On August 21, 2024, it was revealed that co-Chief Investment Officer Ken Leech was placed on immediate leave after receiving a Wells Notice from the U.S. Securities and Exchange Commission (SEC). A Wells Notice indicates that the SEC has found enough evidence to potentially recommend enforcement action against an individual or entity for violations of securities laws.

Furthermore, it was reported by Bloomberg that federal prosecutors were investigating allegations concerning a practice known as cherry-picking, which involves the unjust allocation of profitable trades to preferred accounts. This development resulted in a notable drop in Franklin's stock price, which plummeted by nearly 13%, falling to $19.78 per share by the end of that trading day.

In a subsequent development, on November 25, 2024, the SEC formally charged Ken Leech with fraud, outlining claims that he had engaged in a multi-year scheme where he allocated favorable trades to select portfolios while burdening other accounts with less advantageous trades. The fallout was immediate, causing Franklin's share price to decrease again—this time by over 2% to close at $22.21.

This investigation by Pomerantz LLP underscores its long-standing commitment to upholding the rights of investors. Established over 85 years ago, Pomerantz has a rich history in corporate and securities class litigation, adeptly navigating cases involving breaches of fiduciary duty, corporate misconduct, and securities fraud. With offices located in key cities around the world including New York, Chicago, and London, the firm has successfully recovered billions in damages for affected class members.

Investors who believe they may have suffered losses due to Franklin's actions are encouraged to reach out to Pomerantz for assistance. Danielle Peyton at Pomerantz can be contacted via email at [email protected] or by phone at 646-581-9980, ext. 7980 for more information about the investigation and potential class action participation.

As the situation unfolds, it serves as a critical reminder for investors to stay vigilant regarding corporate governance and the integrity of their investments. Pomerantz’s role in scrutinizing and holding companies accountable is vital in protecting the interests of shareholders and ensuring transparency within the marketplace.

For further updates on this investigation and similar cases, investors should monitor news releases from Pomerantz and other credible sources. Awareness and prompt action can make a significant difference in legal recourse and recovery potential for affected investors.

Disclaimer: This article serves as an informational piece and should not be construed as legal advice. Previous results do not guarantee similar outcomes.