Written by 8:08 am Blog, Securities Fraud Articles

Recovery of Franklin Double Tax-Free Income Fund Investment Losses

Have you suffered investment losses in Franklin Double Tax-Free Income Fund (FPRTX)? To the extent that the investment was recommended to you by your financial advisor, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to Bloomberg, “Franklin Double Tax-Free Income Fund is an open-end fund incorporated in the USA. The Fund’s objective is to provide investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management. The Fund invests mainly in investment grade municipal securities that pay interest free from personal income taxes of a majority of states.”

Unfortunately, a majority of the funds municipal bonds are no longer considered investment grade. According Franklin’s own website “the fund currently invests principally in Puerto Rico.”

All three major rating services have now downgraded Puerto Rico municipal bonds to “junk status.” Many funds that invested heavily in Puerto Rico debt have suffered extreme losses.

The White Law Group is investigating the liability that some brokerage firms may have for investing their clients in Puerto Rico debt. Brokerage firms have an obligation to perform adequate due diligence on any investment they recommend and to ensure that every recommendation they make is suitable in light of the client’s age, investment experience, net worth, and investment objectives. Given what is know about the events leading up to Puerto Rico’s economic crisis, it appears that certain brokerage firms unsuitably invested their clients in these funds.

If you suffered losses in the Franklin Double Tax-Free Income Fund or another fund that heavily invested in Puerto Rico municipal bonds and would like to speak to a securities attorney about whether you have a potential FINRA dispute resolution claim, please call The White Law Group at 312-328-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on the firm, visit https://whitesecuritieslaw.com.

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