Class Action Filed Against American International Group, Inc. by the Law Firm of Schiffrin & Barroway, LLP on Behalf of Purchasers of Franklin Templet22 May 2006
The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of New York on behalf of all those who purchased Franklin Templeton mutual funds from the AIG Advisor Group (Parent company is defendant American International Group, Inc. (NYSE: AIG), hereinafter "AIG" or the "Company") from June 30, 2000 through June 8, 2005, inclusive (the "Class Period").
During the Class Period, the AIG Advisor Group consisted of the following broker-dealers: Royal Alliance, Inc., SunAmerica Securities, Inc., FSC Securities Corp., Sentra Securities Corporation, Spelman & Co., Inc., and Advantage Capital Corp.
The Franklin Templeton mutual funds and their respective symbols are as follows:
Franklin AGE High Income Fund (Nasdaq: AGEFX) (Nasdaq: FAHAX)
(Nasdaq: FHIBX) (Nasdaq: FRAIX) (Nasdaq: FAHRX)
Franklin Adjustable U.S. Government Securities Fund (Nasdaq: FISAX)
(Nasdaq: FCSCX)
Franklin Aggressive Growth Fund (Nasdaq: FGRAX) (Nasdaq: FRAAX)
(Nasdaq: FKABX) (Nasdaq: FKACX) (Nasdaq: FKARX)
Franklin Alabama Tax-Free Income Fund (Nasdaq: FRALX) (Nasdaq: FALEX)
Franklin Arizona Tax-Free Income Fund (Nasdaq: FTAZX) (Nasdaq: FBAZX)
(Nasdaq: FAZIX)
Franklin Balance Sheet Investment Fund (Nasdaq: FRBSX) (Nasdaq: FBSAX)
(Nasdaq: FBSBX) (Nasdaq: FCBSX) (Nasdaq: FBSRX)
Franklin Biotechnology Discovery Fund (Nasdaq: FBDIX)
Franklin Blue Chip Fund (Nasdaq: FKBCX) (Nasdaq: FKBBX) (Nasdaq: FBCCX)
(Nasdaq: FBCRX)
Franklin California High Yield Municipal Fund (Nasdaq: FCAMX)
(Nasdaq: FBCAX) (Nasdaq: FCAHX)
Franklin California Insured Tax-Free Income Fund (Nasdaq: FRCIX)
(Nasdaq: FRCBX) (Nasdaq: FRCAX)
Franklin California Intermediate-Term Tax-Free Income Fund (Nasdaq: FKCIX)
Franklin California Limited Term Tax-Free Income Fund
Franklin California Tax-Exempt Money Fund (Nasdaq: FCLXX)
Franklin California Tax-Free Income Fund (Nasdaq: FKTFX) (Nasdaq: FCAVX)
(Nasdaq: FCABX) (Nasdaq: FRCTX)
Franklin Capital Growth Fund (Nasdaq: FKREX) (Nasdaq: FEACX)
(Nasdaq: FKEQX) (Nasdaq: FREQX) (Nasdaq: FKIRX)
Franklin Colorado Tax-Free Income Fund (Nasdaq: FRCOX) (Nasdaq: FCOIX)
Franklin Connecticut Tax-Free Income Fund (Nasdaq: FXCTX) (Nasdaq: FCTIX)
Franklin Convertible Securities Fund (Nasdaq: FISCX) (Nasdaq: FROTX)
Franklin Double Tax-Free Income Fund (Nasdaq: FPRTX) (Nasdaq: FPRIX)
Franklin DynaTech Fund (Nasdaq: FKDNX) (Nasdaq: FDNBX) (Nasdaq: FDYNX)
Franklin Equity Income Fund (Nasdaq: FISEX) (Nasdaq: FBEIX)
(Nasdaq: FRETX) (Nasdaq: FREIX)
Franklin Federal Intermediate-Term Tax-Free Income Fund (Nasdaq: FKITX)
Franklin Federal Limited Term Tax-Free Income Fund (Nasdaq: FFTFX)
Franklin Federal Money Fund (Nasdaq: FMNXX)
Franklin Federal Tax-Free Income Fund (Nasdaq: FKTIX) (Nasdaq: FAFTX)
(Nasdaq: FFTBX) (Nasdaq: FRFTX)
Franklin Flex Cap Growth Fund (Nasdaq: FKCGX) (Nasdaq: FKCBX)
(Nasdaq: FCIIX) (Nasdaq: FRCGX)
Franklin Floating Rate Daily Access Fund (Nasdaq: FAFRX) (Nasdaq: FBFRX)
(Nasdaq: FCFRX)
Franklin Floating Rate Trust (Nasdaq: XFFLX)
Franklin Florida Insured Tax-Free Income Fund (Nasdaq: FFLTX)
Franklin Florida Tax-Free Income Fund (Nasdaq: FRFLX) (Nasdaq: FRFBX)
(Nasdaq: FRFIX)
Franklin Georgia Tax-Free Income Fund (Nasdaq: FTGAX) (Nasdaq: FGAIX)
Franklin Global Aggressive Growth Fund
Franklin Global Communications Fund (Nasdaq: FRGUX)
Franklin Global Growth Fund
Franklin Global Health Care Fund (Nasdaq: FKGHX) (Nasdaq: FGHBX)
(Nasdaq: FGIIX)
Franklin Gold and Precious Metals Fund (Nasdaq: FKRCX) (Nasdaq: FGADX)
(Nasdaq: FAGPX) (Nasdaq: FRGOX)
Franklin Growth Fund (Nasdaq: FKGRX) (Nasdaq: FCGAX) (Nasdaq: FKGBX)
(Nasdaq: FRGSX) (Nasdaq: FGSRX)
Franklin High Yield Tax-Free Income Fund (Nasdaq: FRHIX) (Nasdaq: FYIBX)
(Nasdaq: FHYIX)
Franklin Income Fund (Nasdaq: FKINX) (Nasdaq: FRIAX) (Nasdaq: FBICX)
(Nasdaq: FICBX) (Nasdaq: FCISX) (Nasdaq: FISRX)
Franklin Insured Tax-Free Income Fund (Nasdaq: FTFIX) (Nasdaq: FBITX)
(Nasdaq: FRITX)
Franklin Kentucky Tax-Free Income Fund (Nasdaq: FRKYX)
Franklin Large Cap Growth Fund (Nasdaq: FKGAX) (Nasdaq: FRGAX)
(Nasdaq: FKGCX) (Nasdaq: FRLGX)
Franklin Large Cap Value Fund (Nasdaq: FLVAX) (Nasdaq: FBLCX)
(Nasdaq: FLCVX) (Nasdaq: FLCRX)
Franklin Louisiana Tax-Free Income Fund (Nasdaq: FKLAX) (Nasdaq: FLAIX)
Franklin Maryland Tax-Free Income Fund (Nasdaq: FMDTX) (Nasdaq: FMDIX)
Franklin Massachusetts Insured Tax-Free Income Fund (Nasdaq: FMISX)
(Nasdaq: FMAIX)
Franklin Michigan Insured Tax-Free Income Fund (Nasdaq: FTTMX)
(Nasdaq: FBMIX) (Nasdaq: FRMTX)
Franklin MicroCap Value Fund (Nasdaq: FRMCX)
Franklin Minnesota Insured Tax-Free Income Fund (Nasdaq: FMINX)
(Nasdaq: FMNIX)
Franklin Missouri Tax-Free Income Fund (Nasdaq: FRMOX) (Nasdaq: FMOIX)
Franklin Money Fund (Nasdaq: FMFXX)
Franklin Natural Resources Fund (Nasdaq: FRNRX) (Nasdaq: FNRAX)
Franklin New Jersey Tax-Free Income Fund (Nasdaq: FRNJX) (Nasdaq: FNJBX)
(Nasdaq: FNIIX)
Franklin New York Insured Tax-Free Income Fund (Nasdaq: FRNYX)
(Nasdaq: FNYKX)
Franklin New York Intermediate-Term Tax-Free Income Fund (Nasdaq: FKNIX)
Franklin New York Limited Term Tax-Free Income Fund
Franklin New York Tax-Exempt Money Fund (Nasdaq: FRNXX)
Franklin New York Tax-Free Income Fund (Nasdaq: FNYTX) (Nasdaq: FNYAX)
(Nasdaq: FTFBX) (Nasdaq: FNYIX)
Franklin North Carolina Tax-Free Income Fund (Nasdaq: FXNCX)
(Nasdaq: FNCIX)
Franklin Ohio Insured Tax-Free Income Fund (Nasdaq: FTOIX) (Nasdaq: FBOIX)
(Nasdaq: FOITX)
Franklin Oregon Tax-Free Income Fund (Nasdaq: FRORX) (Nasdaq: FORIX)
Franklin Pennsylvania Tax-Free Income Fund (Nasdaq: FRPAX) (Nasdaq: FBPTX)
(Nasdaq: FRPTX)
Franklin Real Estate Securities Fund (Nasdaq: FREEX) (Nasdaq: FRLAX)
(Nasdaq: FBREX) (Nasdaq: FRRSX)
Franklin Rising Dividends Fund (Nasdaq: FRDPX) (Nasdaq: FRDBX)
(Nasdaq: FRDTX) (Nasdaq: FRDRX)
Franklin Short-Intermediate U.S. Government Securities Fund
(Nasdaq: FRGVX) (Nasdaq: FSUAX)
Franklin Small Cap Growth Fund II (Nasdaq: FSGRX) (Nasdaq: FSSAX)
(Nasdaq: FBSGX) (Nasdaq: FCSGX) (Nasdaq: FSSRX)
Franklin Small Cap Value Fund (Nasdaq: FRVLX) (Nasdaq: FVADX)
(Nasdaq: FBVAX) (Nasdaq: FRVFX) (Nasdaq: FVFRX)
Franklin Small-Mid Cap Growth Fund (Nasdaq: FRSGX) (Nasdaq: FSGAX)
(Nasdaq: FBSMX) (Nasdaq: FRSIX) (Nasdaq: FSMRX)
Franklin Strategic Income Fund (Nasdaq: FRSTX) (Nasdaq: FKSAX)
(Nasdaq: FKSBX) (Nasdaq: FSGCX) (Nasdaq: FKSRX)
Franklin Strategic Mortgage Portfolio (Nasdaq: FSMIX)
Franklin Tax-Exempt Money Fund (Nasdaq: FTMXX)
Franklin Technology Fund (Nasdaq: FTCAX) (Nasdaq: FRTCX) (Nasdaq: FFTCX)
(Nasdaq: FTERX)
Franklin Templeton Conservative Target Fund (Nasdaq: FTCIX)
(Nasdaq: FTCCX) (Nasdaq: FTCRX)
Franklin Templeton CoreFolio Allocation Fund (Nasdaq: FTCOX)
Franklin Templeton Founding Funds Allocation Fund (Nasdaq: FFALX)
(Nasdaq: FFABX) (Nasdaq: FFACX)
Franklin Templeton Growth Target Fund (Nasdaq: FGTIX) (Nasdaq: FTGTX)
(Nasdaq: FGTRX)
Franklin Templeton Hard Currency Fund (Nasdaq: ICPHX)
Franklin Templeton Moderate Target Fund (Nasdaq: FMTIX) (Nasdaq: FTMTX)
(Nasdaq: FTMRX)
Franklin Templeton Money Fund (Nasdaq: FMBXX) (Nasdaq: FRIXX)
(Nasdaq: FMRXX)
Franklin Tennessee Municipal Bond Fund (Nasdaq: FRTIX)
Franklin Texas Tax-Free Income Fund (Nasdaq: FTXTX) (Nasdaq: FTXIX)
Franklin Total Return Fund (Nasdaq: FKBAX) (Nasdaq: FBDAX) (Nasdaq: FBTLX)
(Nasdaq: FCTLX) (Nasdaq: FTRRX)
Franklin U.S. Government Securities Fund (Nasdaq: FKUSX) (Nasdaq: FUSAX)
(Nasdaq: FUGBX) (Nasdaq: FRUGX) (Nasdaq: FUSRX)
Franklin U.S. Long-Short Fund (Nasdaq: FUSLX)
Franklin Utilities Fund (Nasdaq: FKUTX) (Nasdaq: FRUAX) (Nasdaq: FRUBX)
(Nasdaq: FRUSX) (Nasdaq: FRURX)
Franklin Virginia Tax-Free Income Fund (Nasdaq: FRVAX) (Nasdaq: FVAIX)
Templeton China World Fund (Nasdaq: TCWAX) (Nasdaq: TACWX)
Templeton Developing Markets Trust (Nasdaq: TEDMX) (Nasdaq: TDADX)
(Nasdaq: TDMBX) (Nasdaq: TDMTX) (Nasdaq: TDMRX)
Templeton Foreign Fund (Nasdaq: TEMFX) (Nasdaq: TFFAX) (Nasdaq: TFRBX)
(Nasdaq: TEFTX) (Nasdaq: TEFRX)
Templeton Foreign Smaller Companies Fund (Nasdaq: FINEX) (Nasdaq: FTFAX)
(Nasdaq: FCFSX)
Templeton Global Bond Fund (Nasdaq: TPINX) (Nasdaq: TGBAX) (Nasdaq: TEGBX)
Templeton Global Long-Short Fund (Nasdaq: TLSAX) (Nasdaq: TLSBX)
Templeton Global Opportunities Trust (Nasdaq: TEGOX) (Nasdaq: TEGPX)
Templeton Global Smaller Companies Fund (Nasdaq: TEMGX) (Nasdaq: TGSAX)
(Nasdaq: TESGX)
Templeton Growth Fund, Inc. (Nasdaq: TEPLX) (Nasdaq: TGADX)
(Nasdaq: TMGBX) (Nasdaq: TEGTX) (Nasdaq: TEGRX)
Templeton International (Ex EM) Fund (Nasdaq: TEGEX) (Nasdaq: TGEFX)
Templeton Latin America Fund (Nasdaq: TELAX) (Nasdaq: TLAAX)
(Nasdaq: TLAIX)
Templeton Pacific Growth Fund (Nasdaq: FKPGX) (Nasdaq: FPGCX)
Templeton World Fund (Nasdaq: TEMWX) (Nasdaq: TWDBX) (Nasdaq: TEWTX)
Mutual Beacon Fund (Nasdaq: TEBIX) (Nasdaq: TEBBX) (Nasdaq: TEMEX)
(Nasdaq: BEGRX)
Mutual Discovery Fund (Nasdaq: TEDIX) (Nasdaq: TEDBX) (Nasdaq: TEDSX)
(Nasdaq: TEDRX) (Nasdaq: MDISX)
Mutual European Fund (Nasdaq: TEMIX) (Nasdaq: TEUBX) (Nasdaq: TEURX)
(Nasdaq: MEURX)
Mutual Financial Services Fund (Nasdaq: TFSIX) (Nasdaq: TBFSX)
(Nasdaq: TMFSX) (Nasdaq: TEFAX)
Mutual Qualified Fund (Nasdaq: TEQIX) (Nasdaq: TEBQX) (Nasdaq: TEMQX)
(Nasdaq: MQIFX)
Mutual Recovery Fund (Nasdaq: FMRVX)
Mutual Shares Fund (Nasdaq: TESIX) (Nasdaq: FMUBX) (Nasdaq: TEMTX)
(Nasdaq: TESRX) (Nasdaq: MUTHX)
On June 8, 2005, the NASD announced that it had fined AIG in connection with the receipt of directed brokerage in exchange for preferential treatment for certain mutual fund companies and certain mutual fund families (the "Shelf-Space Funds").
The Shelf-Space Funds included the following mutual fund families: AIG SunAmerica, AIM, AllianceBernstein, American Funds, American Skandia, Columbia, Fidelity, Franklin Templeton, Hartford, John Hancock, MFS, NationsFunds, Pacific Life, Pioneer, Putnam, Oppenheimer, Scudder, Van Kampen, and WM Funds Distributor, Inc.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint charges AIG and certain of its affiliated entities with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the defendants, in clear contravention of their disclosure obligations and fiduciary responsibilities, failed to properly disclose that they had been aggressively pushing sales personnel to sell the Shelf-Space Funds that provided financial incentives and rewards to AIG and its personnel based on sales. Instead of offering fair, honest and unbiased recommendations to investors, the AIG Financial Advisors gave pre-determined recommendations, pushing clients into a pre-selected limited number of mutual funds so that the Financial Advisors could reap millions of dollars in kickbacks from the Shelf-Space Funds, with which they had struck secret, highly-lucrative deals to profit at shareholders' expense. The defendants' sales practices created a material insurmountable conflict of interest between the defendants and their clients by providing substantial monetary incentives to sell Shelf-Space Funds, sales of which increased the defendants' overall profits, but diminished investors' returns in the process. While Shelf-Space Funds were aggressively sold to investors, the defendants failed to disclose any of these financial incentives for selling such funds. The conflict of interest created by the defendants' failure to disclose the incentives is a clear violation of federal securities laws.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com
If you are a member of the class described above, you may, not later than June 6, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
Source: prnewswire
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