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Fifth Street Finance Corp. Shareholder Alert: Former SEC Attorney Willie Briscoe and Powers Taylor Investigate Possible Breaches of Fiduciary Duty by Officers and Directors

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DALLAS--(BUSINESS WIRE)--

Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed in the United States District Court for the Southern District of New York against Fifth Street Finance Corp. ("Fifth Street" or "Company") (Nasdaq: FSC) and several officers and directors for acts taken during the period of July 7, 2014 to February 6, 2015 (the "Class Period").

Based upon the allegations in the class action, the firms are investigating additional legal claims against the officers and Board of Directors of Fifth Street. If you are an affected Fifth Street shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at shareholders@thebriscoelawfirm.com, Patrick Powers at Powers Taylor LLP via email at shareholder@powerstaylor.com, or call toll free at (877) 728-9607. There is no cost or fee to you.

In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants misrepresented and/or failed to disclose that (1) Fifth Street was pushed into increasingly risky investments at unsustainable leverage levels; (2) delayed the write down of impaired investments to create the appearance of increasing revenues for Fifth Street Asset Management, which managed Fifth Street; and (3) systematically overstated the income generated by its investments and the fair value of its portfolios.

On February 9, 2015, Fifth Street announced first fiscal quarter earnings that missed analyst estimates, disclosed that Fifth Street would not be issuing dividends for the month of February, and announced that it was lowering future monthly dividends from $0.0917 per share to $0.06 per share. The Company also revealed that 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. Also, Fifth Street revealed the net investment income received had actually decreased by 6% compared to the prior quarter even though the total assets of its investment portfolio had continued to increase to nearly $3 billion by quarter end. When the truth emerged the Company's stock fell almost 15%.

The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

The Briscoe Law Firm, PLLC
Willie Briscoe, 877-728-9607
shareholders@thebriscoelawfirm.com
or
Powers Taylor LLP
Patrick Powers, 877-728-9607
shareholder@powerstaylor.com





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