NEW YORK, Oct. 09, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired the securities of Fifth Street Finance Corp. (“FSC” or the “Company”) (Nasdaq:FSC) from July 7, 2014 through February 6, 2015, inclusive (the "Class Period"). Shareholders of Fifth Street Finance Corp. who incurred losses on shares purchased within the Class Period are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
If you purchased the shares of Fifth Street Finance Corp. during the period from July 7, 2014 through February 6, 2015, inclusive, you may, no later than November 30, 2015, request that the Court appoint you lead plaintiff of the proposed class.
According to the filed Complaint, on February 9, 2015, Fifth Street reported its fiscal results for the quarter ended December 31, 2014, the same quarter in which Defendants conducted the Fifth Street Asset Management (“FSAM”) IPO.
Fifth Street revealed that, around the time its executives were taking FSAM public, it had moved $106 million worth of investments to non-accrual status with an additional $17 million likely to be designated non-accrual in the subsequent quarter, which together constituted about 5% of the Company’s entire debt investment portfolio on a cost basis. The Company also revealed that, even though the total assets of Fifth Street’s investment portfolio had continued to increase to nearly $3 billion by quarter end, the net investment income received by the Company had actually decreased by 6% compared to the prior quarter. And, despite having announced a 10% dividend increase only four months before taking FSAM public, Fifth Street declared that it would not issue dividends for February 2015, while decreasing future dividend payments by more than 30% as part of a more “conservative” dividend policy.
Following this news, the price of FSC common stock fell $1.27 per share, a decline of nearly 15%, to close at $7.22 per share on February 9, 2015.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Fifth Street Investigation.”
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