Franklin Resources, Inc. is a holding company for a global investment firm.

The original Complaint alleges that Franklin Resources, Inc., Franklin Advisers, Inc. and Franklin/Templeton Distributors, Inc. ("Defendants") violated federal securities laws by paying kickbacks to broker/dealers who sold Franklin/Templeton Mutual Funds. The Complaint asserts that Defendants made false and misleading statements in mutual fund prospectuses and other documents by concealing the existence of the kickback arrangement. According to the suit, Defendants illegally used investor assets to pay the kickbacks. The Complaint asserts violations of the Securities Act of 1933, Securities Exchange Act of 1934, and other laws.

Some of the Defendants were previously sued by the California Attorney General who stated that "the payments are little more than kickbacks to buy preferential treatment. Investors deserve to know that."

In February 2007, the case was transferred to the District of New Jersey for further proceedings. On September 25, 2007, the Defendant filed a motion to dismiss the Class Action Complaint. On November 27, 2007, the Court entered the Order signed by U.S. District Judge William J. Martini granting the Defendant’s motion to dismiss.