NEW YORK, Jan. 13, 2016 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the District of Connecticut on behalf of purchasers of the common stock of Fifth Street Asset Management, Inc. (NASDAQ:FSAM) (“FSAM” or the “Company”) issued in and/or traceable to the Registration Statement related to FSAM’s October 30, 2014 initial public offering (“IPO”).
Shareholders 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 shares of Fifth Street Asset Management, Inc., you may, no later than March 7, 2016, request that the Court appoint you lead plaintiff of the proposed class.
The filed lawsuit alleges that the offering documents filed in connection with the IPO contained materially false and misleading statements and omissions, including that: (i) FSAM had $4.2 billion in assets under management from affiliated company, Fifth Street Finance Corp. (“FSC”), as of June 30, 2014, when in fact a material portion of FSC’s portfolio was impaired and should have been placed on non-accrual prior to the IPO; (ii) that FSAM’s purportedly “strong growth in assets under management” and “outstanding investor performance” was fueled, in part, by delaying the write down of impaired investments in FSC’s portfolio; and (iii) FSC had a material weakness in its controls over financial reporting.
After the IPO, FSC announced in February 2015 that several investments representing nearly 5% of its debt portfolio had been or would likely be placed on non-accrual status and that it was suspending dividend payments. In December 2015, FSC disclosed a material weakness in its internal controls over financial reporting and acknowledged certain accounting errors in the recognition of fee income for the fiscal years ended 2012 through 2015.
As a result of these developments, the price of FSAM stock has declined significantly from the IPO price of $17.00, closing at $3.44 per share on January 7, 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 Asset Management investigation.”
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