A lawsuit was filed on behalf of investors in Fifth Street Asset Management Inc (NASDAQ:FSAM) shares over alleged securities laws violations and NASDAQ:FSAM investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/02/2016 -- A shareholder in Fifth Street Asset Management Inc (NASDAQ:FSAM) filed a lawsuit in the U.S. District Court for the District of Connecticut over alleged violations of Federal Securities Laws by Fifth Street Asset Management Inc.
Investors who purchased shares of Fifth Street Asset Management Inc (NASDAQ:FSAM) have certain options and for certain investors are short and strict deadlines running. Deadline: March 7, 2015. NASDAQ:FSAM investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges on behalf of those who purchased shares pursuant to and/or traceable to the Registration Statement and Prospectus issued in connection with FSAM's October 30, 2014 initial public offering ("IPO"), that the defendants violated the Securities Act of 1933.
Fifth Street Asset Management Inc, which is headquartered in Connecticut, is a credit-focused asset manager and the investment advisor for Fifth Street Finance Corp., Fifth Street Senior Floating Rate Corp. ("FSFR"), and various private Fifth Street funds.
More specifically, the plaintiff claims that that the offering documents filed in connection with the IPO contained allegedly materially false and misleading statements of fact and allegedly failed to disclose facts necessary to make the statements made therein not misleading, including, among other statements, that Fifth Street Asset Management Inc had $4.2 billion assets under management from Fifth Street Finance Corp as of June 30, 2014, when in fact a substantial portion of FSC's portfolio had been impaired on a cost basis prior to the IPO, that Fifth Street Asset Management Inc had increased its management fee revenues by a compound annual growth rate of nearly 50% year-over-year during the six months ended June 30, 2014 due to Fifth Street Asset Management's "outstanding performance," when in fact the growth in fee revenue was largely due to the overstatement of Fifth Street Finance Corp's assets and dilutive stock offerings detrimental to the Funds' shareholders, and that Fifth Street Asset Management Inc had "high-quality and predictable earnings," when in fact Fifth Street Asset Management's revenues were unsustainable and the result of conduct that placed Fifth Street Asset Management's most important asset – its management contract with Fifth Street Finance Corp – at risk.
Shares of Fifth Street Asset Management Inc (NASDAQ:FSA) declined from $14.76 per share in November 2014 to as low as $3.28 per share on January 7, 2016.
Those who purchased shares of Fifth Street Asset Management Inc (NASDAQ:FSAM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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