Franklin Templeton Investors Sues NYSE and Law Firm Over Benitec Biopharma Stock Drop

Background of the Case

Franklin Templeton Investments has filed a lawsuit against the New York Stock Exchange (NYSE) and the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. The lawsuit alleges that the defendants failed to properly disclose material information about Benitec Biopharma, Inc. (NYSE: BEN), which led to a significant drop in the company's stock price.

In 2020, Benitec announced that it had received a $25 million investment from Franklin Templeton. However, the lawsuit alleges that the NYSE and Paul, Weiss failed to disclose that Benitec was facing a delisting from the exchange due to its low stock price. As a result, investors were not aware of the risks associated with investing in Benitec, and many lost money when the stock price dropped.

Details of the Lawsuit

The lawsuit alleges that the NYSE and Paul, Weiss violated the Securities Exchange Act of 1934 by failing to disclose material information about Benitec. The lawsuit also alleges that the defendants made false and misleading statements about the company.

Franklin Templeton is seeking damages from the defendants. The damages include the losses that the firm incurred as a result of the drop in Benitec's stock price.

Potential Impact of the Lawsuit

The lawsuit could have a significant impact on the NYSE and Paul, Weiss. If the lawsuit is successful, it could lead to changes in the way that the NYSE discloses information about companies that are listed on the exchange. It could also lead to increased liability for law firms that represent companies that are listed on the NYSE.

Conclusion

The lawsuit is a reminder of the importance of transparency and disclosure in the financial markets. Investors rely on the NYSE and law firms to provide them with accurate information about the companies that they invest in. When this information is not provided, investors can lose money.