HOUSTON, Feb. 17, 2004 (PRIMEZONE) -- Emerson Poynter LLP announces that a class action lawsuit has been filed in the United States District of the Northern District of California, on behalf of purchasers of 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 Blue Chip Fund (Nasdaq:FKBCX), (Nasdaq:FKBBX), (Nasdaq:FBCCX), (Nasdaq:FBCRX); Franklin California High Yield Municipal Fund (Nasdaq:FCANX), (Nasdaq:FBCAX), (Nasdaq: FCAHX), and other securities of the Franklin family of funds (the "Funds") operated by Franklin Resources, Inc. (NYSE:BEN) and its subsidiaries between February 6, 1999 and February 4, 2004, inclusive (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934, the Securities Act of 1933 and the Investment Advisers Act of 1940.
The action, case number C 04 0598, is pending in the United States District Court for the Northern District of California against defendants Franklin Resources, Inc.; Franklin Advisers, Inc; Templeton/Franklin Investment Services, Inc.; Franklin Private Client Services, Inc.; Franklin Mutual Advisers, LLC; Williams Post; Security Brokerage, Inc. ("SBI"); Daniel G. Calugar ("Calugar"), DCIP, L.P. ("DCIP"); Franklin Templeton Strategic Growth Fund, L.P.; each of the Franklin mutual funds and their registrants, and John Does 1-100.
The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, certain of the defendants failed to disclose that they improperly allowed certain favored investors, including Calugar, SBI, and DCIP, to engage in "timing" of the Funds' securities. Timing is excessive, arbitrage trading undertaken to turn a quick profit and which ordinary investors are told that the funds police. Timing injures ordinary mutual fund investors - who are not allowed to engage in such practices -- and is acknowledged as improper practices by the Funds. In return for receiving extra fees from Calugar, SBI, and DCIP, and other favored investors, Franklin Resources and its affiliates allowed and facilitated timing activities in the Funds, to the detriment of class members who paid, dollar for dollar, for the improper profits made by Calugar, SBI, and DCIP. These practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing and that premature redemptions will be assessed a charge.
The Funds, and the symbols for the respective Funds named below, 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: Inc. (Nasdaq: TEMGX), (Nasdaq: TGSAX. TESGX)
Templeton Growth Fund), (Nasdaq: 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)
Emerson Poynter LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Ark., but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm.
If you purchased or otherwise acquired any of the Funds described above, between February 6, 1999 and February 4, 2004, and sustained damages, you may, no later than March 5, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action by contacting Tanya R. Autry in the Shareholder Relations Department by telephone at 1-800-663-9817 or by email to shareholder@emersonfirm.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca