Franklin Resources Inc.
06/05/2026 | Press release | Distributed by Public on 06/05/2026 07:01
Material Event (Form 8-K)
Item 8.01 Other Events.
As previously disclosed, Western Asset Management Company, LLC ("Western Asset"), a wholly-owned subsidiary of Franklin Resources, Inc., received notifications of investigation by the U.S. Department of Justice (the "DOJ") and the U.S. Securities and Exchange Commission (the "SEC") regarding alleged violations of certain laws related to trade allocations by Ken Leech, the former co-Chief Investment Officer of Western Asset. The DOJ has notified Western Asset that it is no longer a subject of its investigation and will take no further action.
On June 4, 2026, Western Asset reached a settlement with the SEC, resolving the SEC's investigation in its entirety (the "Settlement"). Under the terms of the Settlement, Western Asset, without admitting any wrongdoing, has agreed to pay a civil penalty of $100 million to be paid into a Fair Fund for the benefit of investors for the conduct set forth in the Settlement.
Western Asset agreed to the Settlement as a business decision that it believes avoids the distraction of prolonged litigation and allows Western Asset to put this matter behind it and focus fully on its clients.
These outcomes end the investigations of Western Asset by the DOJ and the SEC.
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