Franklin Resources Stock Jumps 6% On Thursday — Hits 52-Week High

• The agreement could be announced within days, reported Bloomberg, citing people familiar with the matter.
• Franklin Resources may pay at least $100 million as part of the resolution, Bloomberg reported.
• The investigation centers on trading activities involving former Western Asset Management executive Ken Leech.

Shares of Franklin Resources, Inc. (BEN) rose 6% on Thursday afternoon, touching a new 52-week high as investors reacted to reports that its Western Asset Management unit is nearing a settlement with the Securities and Exchange Commission over a probe tied to former portfolio manager Ken Leech.

Franklin Resources shares reached an intraday 52-week high of $32.47 on Thursday, according to Koyfin data. 

Settlement Within Days?

Western Asset Management Co. (WAMCO) is reportedly nearing an agreement with the Securities and Exchange Commission to resolve an investigation into trade-allocation practices tied to former portfolio manager Ken Leech, reported Bloomberg. The settlement could be announced in the coming days and may require Franklin Resources to pay at least $100 million.

If finalized at that level, the penalty would rank among the largest SEC enforcement actions announced during President Donald Trump's second term. Bloomberg reported that discussions are ongoing and the final terms of the settlement remain under consideration. 

Probe Stems From Trade Allocation Practices

The SEC's investigation centers on allegations that Leech improperly allocated profitable trades to favored clients. Separately, Leech is facing criminal charges from the Department of Justice, including securities fraud allegations tied to what prosecutors described as a “cherry-picking” scheme, reported Bloomberg. Prosecutors allege that more than $600 million in gains were directed to select accounts, including the firm's Macro Opportunities fund.

Leech, once one of WAMCO’s most prominent portfolio managers, took leave after the investigation became public in August 2024 and later retired from the firm. He has pleaded not guilty to the charges, and his criminal trial is scheduled to begin on June 15 in New York. The SEC's civil case against him remains ongoing. 

BEN Continues Effort To Move Past Scandal

The investigation has weighed heavily on WAMCO’s business. Following the allegations, pension funds and other institutional clients withdrew more than $100 billion from the firm, significantly reducing assets in its flagship bond strategies, according to the Blomberg report.

A resolution with the SEC would mark another step in Franklin Resources’ effort to move beyond the controversy. 

BEN Stock: What Retail Sentiment Says

On Stocktwits, retail sentiment around BEN was “bullish,” unchanged IN the past 24 hours.

Thursday’s stock rally also came a day after Franklin Resources reported an assets under management (AUM) update. The company reported AUM of $1.78 trillion as of May 31, 2026, up from $1.75 trillion on April 30, 2026, helped by market gains and net inflows.

BEN stock has gained about 47% over the past 12 months. 

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