Franklin Resources said in a regulatory filing that it may be in trouble from the state of California for revenue-sharing payments made to brokerage firms. California Attorney General Bill Lockyer told the company that enforcement action would be authorized, Franklin said. The news comes seven months after Lockyer announced a deep look into revenue sharing between mutual funds, including Franklin, and brokers.

Franklin is already in apparent trouble from the Securities and Exchange Commission for revenue-sharing agreements, and the firm even stashed aside $21.5 million in the second quarter to pay for what it called "anticipated settlement of governmental investigations concerning payments to securities dealers who sell fund shares."

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