Bronstein, Gewirtz and Grossman, LLC Announces an Investigation Against Franklin Resources, Inc. (BEN) and Encourages Shareholders to Seek Compensation for Alleged Wrongdoings
Bronstein, Gewirtz & Grossman, is investigating potential claims against Franklin Resources, Inc. (NYSE:BEN) on behalf of shareholders. The investigation follows a significant event involving Franklin's subsidiary, Western Asset Management Company. On August 21, 2024, it was announced that Ken Leech, co-Chief Investment Officer of Western Asset Management, received a Wells Notice from the SEC and is on immediate leave of absence.
Concurrently, Bloomberg reported that federal prosecutors are investigating potential 'cherry-picking' practices at Western Asset Management. This news caused Franklin's stock to drop 12.56%, closing at $19.78 per share on August 21, 2024. Shareholders are encouraged to participate in the investigation by visiting bgandg.com/BEN.
Bronstein, Gewirtz & Grossman sta indagando su possibili reclami contro Franklin Resources, Inc. (NYSE:BEN) per conto degli azionisti. L'indagine segue un evento significativo che coinvolge la sussidiaria di Franklin, Western Asset Management Company. Il 21 agosto 2024, è stato annunciato che Ken Leech, co-Chief Investment Officer di Western Asset Management, ha ricevuto un Wells Notice dalla SEC ed è in congedo lavorativo immediato.
Nel contempo, Bloomberg ha riportato che i procuratori federali stanno indagando su potenziali pratiche di 'cherry-picking' presso Western Asset Management. Questa notizia ha causato un declino del 12,56% delle azioni di Franklin, chiudendo a 19,78 dollari per azione il 21 agosto 2024. Gli azionisti sono invitati a partecipare all'indagine visitando bgandg.com/BEN.
Bronstein, Gewirtz & Grossman está investigando posibles reclamaciones contra Franklin Resources, Inc. (NYSE:BEN) en nombre de los accionistas. La investigación sigue un evento significativo que involucra a la subsidiaria de Franklin, Western Asset Management Company. El 21 de agosto de 2024, se anunció que Ken Leech, co-Chief Investment Officer de Western Asset Management, recibió un Wells Notice de la SEC y está en licencia de ausencia inmediata.
Al mismo tiempo, Bloomberg informó que los fiscales federales están investigando posibles prácticas de 'cherry-picking' en Western Asset Management. Esta noticia provocó que las acciones de Franklin cayeran un 12.56%, cerrando a $19.78 por acción el 21 de agosto de 2024. Se anima a los accionistas a participar en la investigación visitando bgandg.com/BEN.
Bronstein, Gewirtz & Grossman은 주주를 대신하여 Franklin Resources, Inc. (NYSE:BEN)에 대한 잠재적 청구를 조사하고 있습니다. 이 조사는 Franklin의 자회사인 Western Asset Management Company와 관련된 중대한 사건에 따른 것입니다. 2024년 8월 21일, Western Asset Management의 공동 최고 투자 책임자인 Ken Leech가 SEC로부터 웰스 통지서를 받았고 즉각적인 휴가에 들어갔다는 소식이 전해졌습니다.
동시에 Bloomberg는 연방 검찰이 Western Asset Management의 '체리 피킹' 관행을 조사하고 있다고 보도했습니다. 이 뉴스로 인해 Franklin의 주가는 12.56% 하락하여, 2024년 8월 21일 주당 $19.78로 마감했습니다. 주주들은 bgandg.com/BEN을 방문하여 조사에 참여할 것을 권장받고 있습니다.
Bronstein, Gewirtz & Grossman enquête sur de potentielles réclamations contre Franklin Resources, Inc. (NYSE:BEN) au nom des actionnaires. L'enquête fait suite à un événement significatif impliquant la filiale de Franklin, Western Asset Management Company. Le 21 août 2024, il a été annoncé que Ken Leech, co-Chief Investment Officer de Western Asset Management, a reçu un Wells Notice de la SEC et est en congé immédiat.
Dans le même temps, Bloomberg a rapporté que des procureurs fédéraux enquêtent sur d'éventuelles pratiques de 'cherry-picking' chez Western Asset Management. Cette nouvelle a provoqué une baisse de 12,56 % des actions de Franklin, clôturant à 19,78 $ par action le 21 août 2024. Les actionnaires sont encouragés à participer à l'enquête en visitant bgandg.com/BEN.
Bronstein, Gewirtz & Grossman untersucht potenzielle Ansprüche gegen Franklin Resources, Inc. (NYSE:BEN) im Namen der Aktionäre. Die Untersuchung folgt auf ein bedeutendes Ereignis, das die Tochtergesellschaft von Franklin, Western Asset Management Company, betrifft. Am 21. August 2024 wurde bekannt gegeben, dass Ken Leech, Co-Chief Investment Officer von Western Asset Management, eine Wells Notice von der SEC erhalten hat und sich sofort in einem unbezahlten Urlaub befindet.
Gleichzeitig berichtete Bloomberg, dass Bundesanwälte potenzielle Praktiken des 'Cherry-Picking' bei Western Asset Management untersuchen. Diese Nachrichten führten dazu, dass die Aktien von Franklin um 12,56% fielen und bei 19,78 $ pro Aktie schlossen am 21. August 2024. Aktionäre werden ermutigt, an der Untersuchung teilzunehmen, indem sie bgandg.com/BEN besuchen.
- None.
- Co-Chief Investment Officer of subsidiary received Wells Notice from SEC
- Federal criminal probe into potential 'cherry-picking' practices
- Stock price fell 12.56% on news of investigation
- Potential legal and regulatory risks for the company
Insights
The announcement of a Wells Notice and criminal investigation into potential "cherry-picking" practices at Franklin Resources' subsidiary is a significant legal and regulatory concern. Wells Notices often precede formal SEC charges, indicating serious allegations. The reported criminal probe by federal prosecutors adds another layer of severity.
This situation could lead to substantial financial penalties, reputational damage and potential loss of client trust. The immediate leave of absence of a key executive suggests the company is taking the matter seriously. However, it's important to note that investigations don't always result in charges or findings of wrongdoing.
Investors should monitor this situation closely, as the outcome could impact Franklin's financial performance, regulatory standing and market position in the asset management industry.
The market's immediate reaction, with Franklin's stock price dropping
If allegations are proven, Franklin could face substantial fines, legal costs and potential client withdrawals. The asset management industry relies heavily on trust and reputation, making this investigation particularly damaging. Long-term implications could include increased regulatory scrutiny and potential changes in internal controls and practices, leading to higher compliance costs.
Investors should carefully assess the potential financial impact and monitor for any updates on the investigation or changes in Franklin's assets under management.
This investigation could have ripple effects across the asset management industry. If widespread, "cherry-picking" practices could lead to increased regulatory scrutiny for all players, potentially resulting in industry-wide reforms and higher compliance costs.
Competitors may seize this opportunity to gain market share at Franklin's expense, especially if institutional clients become wary. However, a broader investigation could level the playing field if multiple firms are implicated.
The incident highlights the importance of robust internal controls and ethical practices in asset management. Firms demonstrating strong governance may see increased inflows as investors prioritize transparency and compliance. This event could accelerate the trend towards passive investing and ETFs, as investors seek to minimize exposure to potential misconduct in active management.
NEW YORK CITY, NY / ACCESSWIRE / August 27, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Franklin Resources, Inc. ("Franklin" or "the Company") (NYSE:BEN). Investors who purchased Franklin securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/BEN.
Investigation Details
On August 21, 2024, Franklin subsidiary Western Asset Management Company issued a press release announcing that co-Chief Investment Officer Ken Leech "is on a leave of absence, effective immediately" after "receiv[ing] a Wells Notice from the Staff of the U.S. Securities and Exchange Commission". That same day, Bloomberg reported that "[f]ederal prosecutors in New York are investigating whether a Western Asset Management executive allocated winning trades to favored accounts, as part of a criminal probe into a practice known as ‘cherry-picking.'"
On this news, Franklin's stock price fell
What's Next?
If you are aware of any facts relating to this investigation or purchased Franklin securities, you can assist this investigation by visiting the firm's site: bgandg.com/BEN . You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | info@bgandg.com
SOURCE: Bronstein, Gewirtz and Grossman, LLC
View the original press release on accesswire.com
FAQ
What is the investigation against Franklin Resources (BEN) about?
How did Franklin Resources' (BEN) stock price react to the news on August 21, 2024?
What is a Wells Notice in relation to Franklin Resources (BEN) subsidiary?
What are the allegations of 'cherry-picking' at Franklin Resources' (BEN) subsidiary?
