SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP reminds investors of the upcoming deadline to move for appointment as lead plaintiff in securities class litigation brought on behalf of investors who purchased the common stock of Fifth Street Finance Corp. (“FSC” or the “Company”) (Nasdaq: FSC) between July 7, 2014 through February 6, 2015, inclusive (the “Class Period”).
If you purchased FSC common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than November 30, 2015. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
FSC investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
The actions allege that during the Class Period, defendants engaged in a fraudulent scheme and course of business designed to artificially inflate FSC’s assets and investment income to increase the revenue of its asset manager and investment advisor, Fifth Street Asset Management (“FSAM”). Specifically, defendants allegedly pushed FSC into increasingly risky, speculative investments at unsustainable leverage levels, delayed writing down impaired investments, and systematically overstated income generated by FSC’s investments and its portfolio’s fair value, while simultaneously misrepresenting FSC’s business trends and expected performance.
On February 9, 2015, FSC revealed that around the time of FSAM’s Initial Public Offering in October 2014, it had placed $106 million in investments on non-accrual status and that it would likely place an additional $17 million on non-accrual status in the following quarter, for a total of approximately 5% of FSC’s debt investment portfolio. FSC also disclosed that even though its investment portfolio had continued to increase in the quarter ended December 31, 2014, the net investment income received by FSC had actually decreased by 6% compared to the prior quarter. Moreover, FSC stated that it would not issue dividends for February 2015 and would slash future dividends by more than 30%. On the same day, defendants revealed that during the quarter ended December 31, 2014, FSC’s net investment originations were only $311 million, not $350 million as previously stated. On this news, the price of FSC common stock fell $1.27 per share, or nearly 15%, to close at $7.22 per share on February 9, 2015, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a nationally recognized law firm committed to advancing investor rights and promoting corporate responsibility.
For twelve years, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms, including in 2015.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.