Pomerantz Law Firm Investigates Franklin Resources, Alleging Fraudulent Practices Impacting Investors

Investigation of Franklin Resources: A Closer Look at Recent Allegations



On December 27, 2024, the Pomerantz Law Firm announced an investigation on behalf of investors in Franklin Resources, Inc. (NYSE: BEN). This inquiry is focused on potential securities fraud and unlawful business practices allegedly committed by the company's executives, raising significant concerns about transparency and ethical conduct in leadership.

The investigation was spurred by a troubling incident that unfolded on August 21, 2024, when Franklin's subsidiary, Western Asset Management Company, revealed that co-Chief Investment Officer Ken Leech was placed on immediate leave of absence after receiving a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This notice indicated that the SEC was considering enforcement action due to Leech's involvement in actions that may have breached securities laws.

Adding to the complexity of this situation, reports surfaced suggesting that federal prosecutors in New York were delving into allegations against Leech associated with “cherry-picking,” a potentially illegal practice wherein managers allocate profitable trades to favored clients while leaving less favorable trades for others. Following the news, Franklin's shares plummeted $2.84, a staggering 12.56% drop, closing at $19.78 on the same day.

In a further twist, on November 25, 2024, the SEC formally charged Ken Leech with fraud, claiming he orchestrated a multi-year scheme to selectively allocate lucrative trades. This charge not only highlights serious breaches of fiduciary responsibility but also casts a long shadow over Franklin Resources' corporate governance practices. Following this revelation, the stock experienced yet another decline, losing $0.51 or 2.24% to finish at $22.21 the next day.

Pomerantz LLP, known for its dedication to protecting the rights of victims affected by corporate misconduct, is urging Franklin's investors to reach out if they believe they were impacted by these developments. The firm has an extensive history of recovering damages for clients, having reclaimed billions in damages through class action litigations. As one of the leading firms specializing in securities fraud and corporate governance issues, Pomerantz has set the standard for addressing such violations in the financial market.

With its offices located in major cities such as New York, Los Angeles, and London among others, Pomerantz is ready to stand by investors seeking justice in the wake of these troubling allegations against Franklin Resources. The firm encourages affected stakeholders to step forward and share their experiences, potentially contributing to a broader understanding of the situation at hand.

For investors seeking to join the class action lawsuit or gather more information, direct contact can be made with attorney Danielle Peyton at Pomerantz LLP. The unfolding drama surrounding Franklin Resources serves as a warning to investors about the critical importance of vigilance in corporate oversight. The trending investigations demonstrate that breaches of trust at the executive level can have massive implications for shareholders' wealth and confidence in their investments.

As this story continues to develop, stakeholders should remain informed and proactive, understanding the dynamics at play within their investments. The financial consequences of corporate impropriety can be far-reaching, affecting not only immediate stock prices but also long-term investor trust and market stability.

Topics Financial Services & Investing)

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