BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of investors of Fifth Street Finance Corp. ("Fifth Street" or the "Company") (Nasdaq: FSC, FSAM) concerning the Company’s and its officers’ possible violations of federal securities laws in connection with the Company’s alleged failure to inform investors regarding underperforming assets, and the self-serving measures taken by management to increase compensation.
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.
If you purchased Fifth Street securities and have suffered a loss of $100,000 or more on your Fifth Street investment, or if you have information or would like to learn more about these claims, or 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 howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.