Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Fifth Street Asset Management Inc. To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Fifth Street Asset Management Inc. (“FSAM” or the “Company”) (NASDAQ:FSAM) of the March 7, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Connecticut on behalf of all those who purchased FSAM securities on or around October 30, 2014 initial public offering (the “IPO”). The case, Linde et al v. Fifth Street Asset Management, Inc. et al, No. 3:16-cv-00025 was filed on January 7, 2016, and has been assigned to Judge Robert N. Chatigny.
The lawsuit claims that the Company and its executives violated federal securities laws by issuing false and misleading statements and filing documents omitting information in connection with the Company’s IPO.
Specifically, since the IPO was completed, Fifth Street Finance Corp. (“FSC”), a publicly traded asset portfolio company under FSAM, announced that a substantial portion of its debt portfolio had entered non-accrual, including $4.2 billion it manages for FSAM. This led to FSC being downgraded by Fitch Ratings Inc. from BB+ from BBB- on a negative outlook due largely to FSAM’s poor management of FSC and its credibility problems with investors. Since the announcement, FSC has had to reissue financials for three consecutive quarters.
The share price has fallen from its $17.00 per share IPO price to a $4.03 per share closing price on December 9—a 76% drop.
If you invested in FSAM stock pursuant to and/or traceable to the IPO and would like to discuss your legal rights, please fill out the form below. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding FSAM’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.