Gutride Safier has filed a class-action lawsuit against Franklin Templeton in the United States District Court for the Northern District of California.
The suit alleges that the company paid kickbacks to broker/dealers that sold the company’s funds between Jan. 1, 2000 and Nov. 14, 2004.
The complaint also alleges that the company did not reveal the existence of the kickbacks in the funds’ prospectuses.
The California Attorney General previously sued the company, saying “the payments are little more than kickbacks to buy preferential treatment. Investors deserve to know that.”