Franklin to Pay California $18M for Shelf-Space Deals
November 22, 2004
Franklin Templeton Investments agreed to pay $18 million to California for failing to disclose it paid brokers for shelf space, Bill Lockyer, the state's attorney general, announced. Of this money, $14 million will be reimbursed to investors, $2 million is for a civil penalty and $2 million is to reimburse Lockyer's office for the investigation. Franklin also agreed to fully inform investors about shelf-space deals going forward. Lockyer settled a similar case with PIMCO for $9 million in September. His investigation into American Funds is ongoing.