Franklin Resources Subsidiary Settles SEC Investigation for $100M, DOJ Closes Case
BEN sits 45% above its 52-week low of $21.105.
Summary
Franklin Resources' subsidiary, Western Asset, settled an SEC investigation for $100 million, while the DOJ closed its related probe, ending regulatory uncertainty.
Key Events · Legal and Risk Events · BEN
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SEC Investigation Resolved
Western Asset Management Company, a wholly-owned subsidiary, settled an SEC investigation regarding alleged trade allocation violations by a former co-Chief Investment Officer.
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$100 Million Civil Penalty
The settlement with the SEC includes a civil penalty of $100 million, to be paid into a Fair Fund for the benefit of investors, without admission of wrongdoing.
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DOJ Investigation Closed
The U.S. Department of Justice has notified Western Asset that it is no longer a subject of its investigation and will take no further action.
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Regulatory Uncertainty Removed
These outcomes conclude both the DOJ and SEC investigations, removing a significant regulatory overhang and allowing the company to focus on its clients.
Analysis · BEN · Finance
Franklin Resources' wholly-owned subsidiary, Western Asset, has resolved long-standing investigations by the DOJ and SEC. While the SEC settlement includes a $100 million civil penalty, the DOJ has closed its investigation without further action. This resolution removes a significant regulatory overhang and associated uncertainty for the company.
At the time of this filing, BEN was trading at $30.57 on NYSE in the Finance sector, with a market capitalization of approximately $16.6B. The 52-week trading range was $21.11 to $32.47. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.