SOURCE: Stull, Stull & Brody

April 10, 2006 19:20 ET

Stull, Stull & Brody Announces Class Action Against American International Group, Inc. on Behalf of Purchasers of Franklin Templeton Mutual Funds

NEW YORK, NY -- (MARKET WIRE) -- April 10, 2006 -- Notice is hereby given that a class action lawsuit was filed on April 7, 2006 in the United States District Court for the Eastern District of New York against American International Group, Inc. and certain of its affiliates, on behalf of those who purchased Franklin Templeton mutual funds from the AIG Advisor Group (as defined below) during the period between June 30, 2000 and 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.

If you purchased Franklin Templeton mutual funds or any funds participating in the AIG Advisor Group revenue sharing programs ("Shelf-Space Funds," as defined below) through an AIG Advisor Group broker-dealer between June 30, 2000 and June 8, 2005, inclusive, and sustained damages, you may, no later than June 6, 2006, file a motion with the Court requesting to be appointed as lead plaintiff. 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 is most capable of adequately representing the interests of the other class members. Under certain circumstances, more than one class member may 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 Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

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:  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)
The Shelf-Space Funds include the following mutual fund families: AIG SunAmerica, AIM, AllianceBernstein, American, American Skandia, Columbia, Fidelity, Franklin Templeton, Hartford, John Hancock, MFS, NationsFunds, Pacific Life, Pioneer, Putnam, Oppenheimer, Scudder, Van Kampen, and WM.

This action is pending in the United States District Court for the Eastern District of New York against defendant American International Group, Inc. and certain of its affiliated entities. The complaint alleges that during the Class Period, defendants served as financial advisors who purportedly provided unbiased and honest investment advice to their clients. Unbeknownst to investors, defendants, in clear contravention of their disclosure obligations and fiduciary responsibilities, failed to properly disclose that they had engaged in a scheme to aggressively push AIG Advisor Group sales personnel to steer clients into purchasing Shelf-Space Funds that provided financial incentives and rewards to the AIG Advisor Group and its personnel based on holdings and/or sales. The complaint alleges that defendants' undisclosed sales practices created an insurmountable conflict of interest by providing substantial monetary incentives to sell Shelf- Space Funds, even though such investments were not in the clients' best interest. The AIG Advisor Group's failure to adequately disclose the incentives constituted violations of federal securities laws.

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 James Lahm, Esq. at the offices of Stull, Stull & Brody.

Contact Information