Berger Montague investigates claims for Franklin Resources shareholders in September 2024

On August 21, 2024, Franklin Resources, Inc. disclosed that a co-Chief Investment Officer of its subsidiary, Western Asset Management, was placed on leave following a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This notice typically indicates that the SEC has found sufficient grounds to bring a civil enforcement action against an individual or entity. The situation escalated as federal investigators began looking into Western Asset Management, raising concerns about the company's operations and compliance with regulations. In response to these developments, Franklin Resources decided to close one of its investment funds, which had approximately $2 billion in assets under management. This decision reflects the company's attempt to mitigate potential financial losses and protect shareholder interests amid the ongoing investigation. The closure of the fund is a significant move, indicating the severity of the situation and the potential impact on the company's financial health. Following the announcement, Franklin Resources' stock price fell by $2.84, or 12.56%, closing at $19.78 per share on the same day. This decline in share value highlights the immediate market reaction to the news and the loss of investor confidence in the company. Shareholders are likely concerned about the implications of the investigation and the potential for further financial repercussions. In light of these events, Berger Montague has initiated an investigation into potential claims on behalf of Franklin Resources shareholders. The firm is encouraging whistleblowers with non-public information to come forward, emphasizing the importance of transparency and accountability in the investment management sector.