STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Fifth Street Finance Corp. (NasdaqGS: FSC) (“Fifth Street” or the “Company”) common stock during the period between July 7, 2014 and February 6, 2015, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until November 30, 2015 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in Fifth Street common stock purchased on or after July 7, 2014 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at firstname.lastname@example.org or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company common stock during the Class Period. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that defendants pushed Fifth Street into increasingly risky, speculative investments at unsustainable leverage levels, delayed writing down impaired investments in order to create the appearance of increasing revenues for Fifth Street, and systematically overstated the income generated by Fifth Street’s investments and the fair value of its portfolio, while simultaneously providing investors and the market with false and misleading portrayals of Fifth Street’s business trends and expected performance.
According to the complaint, following the Company’s announcement on February 9, 2015 that about 5% of the Company’s debt investment portfolio was moved to non-accrual status, that net investment income had decreased from the prior quarter, and that dividends would be eliminated for that month and decreased in the future, the value of Fifth Street shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.