Hagens Berman Reminds Investors With Losses Over $100,000 in Fifth Street Finance Corp.(NASDAQ GS: FSC), Fifth Street Asset Management Inc., and Fifth Street Senior Floating Rate Corp. of Securities Fraud Class Action Lawsuit

SAN FRANCISCO, Oct. 26, 2015 (GLOBE NEWSWIRE) — Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors with losses over $100,000 of the November 30, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against Fifth Street Finance Corp. (NASDAQ:FSC), and related to Fifth Street Asset Management Inc. (NASDAQ:FSAM) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR).

If you have sizeable losses in your investments in FSC, FSAM, or FSFR securities during the Class Period, contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000, emailing FSC@hbsslaw.com or visiting http://hb-securities.com/investigations/FSC. The case was filed in the U.S. District Court for the Southern District of New York on behalf of shareholders who purchased FSC common stock between July 7, 2014 and February 6, 2015.

FSC is a specialty finance company managed by FSAM that lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors.  The two companies are intertwined – FSC founder Leonard M. Tannenbaum and his associates were the private owners of FSAM before taking it public in October 2014. Because FSC is FSAM’s largest customer, its revenues are tied directly to FSC’s gross assets and recorded income. Basically, the larger FSC’s asset portfolio became and the more income it recorded, the greater FSAM’s revenue stream would appear to investors. The direct result was that Tannenbaum and his associates could sell their FSAM shares to the public at inflated prices during FSAM’s IPO.

The complaint alleges that during the Class Period, FSC pushed into risky, speculative investments at unsustainable leverage levels and delayed writing down impaired investments to create the appearance of increasing revenues for FSAM. Defendants also systematically overstated the income generated by FSC’s investments and the fair value of its portfolio while simultaneously providing investors and the market with false and misleading portrayals of the Company’s business trends and expected performance. 

“After going public, Defendants could no longer hide their shady dealings,” said Hagens Berman Partner Reed Kathrein. “Now that their conduct has been made public, shareholders deserve compensation for their losses.”

If you lost more than $100,000 in your investments in FSC, FSAM, or FSFR securities between July 7, 2014 and February 6, 2015, inclusive, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.

Whistleblowers: Persons with non-public information regarding FSC, FSAM, or FSFR should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email FSC@hbsslaw.com.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm headquartered in Seattle, Washington with offices in ten cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com. For the latest news from Hagens Berman, visit http://www.hbsslaw.com/newsroom or follow us on Twitter at @classactionlaw.

CONTACT: Reed Kathrein, (510) 725-3000