The Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Fifth Street Finance Corp. Investors
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Fifth Street Finance Corp. ("Fifth Street" or the "Company") (Nasdaq: FSC) securities between July 7, 2014 and February 6, 2015, inclusive (the "Class Period"). Fifth Street investors have until November 30, 2015 to file a lead plaintiff motion. Investors who suffered losses on their investment in Fifth Street securities are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org.
On February 9, 2015, the Company announced first fiscal quarter earnings that missed analyst estimates, disclosed that the Company would not be issuing dividends for the month of February, and announced that the Company was lowering future monthly dividends from $0.0917 per share to $0.06 per share. Fifth Street 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 around the time the Company's executives were taking Fifth Street Asset Management ("FSAM") public. In addition, Fifth Street revealed the net investment income received by the Company had actually decreased by 6% compared to the prior quarter even though the total assets of the Company's investment portfolio had continued to increase to nearly $3 billion by quarter end.
On this news, the Company's stock fell $1.27, or almost 15%, to close at $7.22 on February 9, 2015, thereby damaging investors.
The complaint alleges that Fifth Street made increasingly risky, speculative investments at unsustainable leverage levels and delayed writing down impaired investments. The complaint also alleges that the Company artificially inflated Fifth Street's assets and investment income in order to increase FSAM's revenue so that defendants could cash in on FSAM's public offering.
If you purchased shares of Fifth Street during the Class Period you may move the Court no later than November 30, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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