NEW YORK, Aug. 24, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Franklin Resources, Inc. (NYSE: BEN) for potential violations of the federal securities laws.
If you invested in Franklin Resources, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/franklin-resources-inc.
Why Did Franklin Resources’s Stock Drop?
Franklin Resources is a $1.7 trillion asset management company better known as Franklin Templeton. One of its key divisions is Western Asset Management (“WAM”), which is a fixed income manager.
On July 26, 2024, Franklin Resources revealed that “following the launch of an internal investigation focusing on certain past trade allocations of treasury derivatives in select” WAM accounts, “WAM received notification of parallel investigations by the SEC and U.S. Department of Justice.”
Then, on August 21, 2024, Franklin Resources disclosed that WAM co-Chief Investment Officer Ken Leech had been placed on leave “effective immediately” after he “received a Wells Notice from the Staff of the U.S. Securities and Exchange Commission.” The company further stated that, “[i]n light of Mr. Leech’s leave of absence, the Company has determined that closing its Macro Opportunities strategy (approximately $2.0 billion in AUM as of 7/31/2024) is in clients’ best interests.” On the same day, Bloomberg reported that federal prosecutors in the Southern District of New York are investigating whether Leech allocated winning trades to favored accounts, as part of a criminal probe into a practice known as “cherry-picking.”
The news caused a precipitous decline in the price of Franklin Resources stock. On July 26, 2024, the price of the company’s stock fell 2.4%, from a closing price of $23.64 per share on July 25, 2024, to $23.08 per share on July 26, 2024. Then, on August 21, 2024, the price of Franklin Resources stock fell 12.5%, from a closing price of $22.62 per share on August 20, 2024, to $19.78 per share on August 21, 2024.
Click here for more information: https://www.bfalaw.com/cases-investigations/franklin-resources-inc.
What Can You Do?
If you invested in Franklin Resources, Inc. you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/franklin-resources-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/franklin-resources-inc
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