Levi & Korsinsky, LLP announces the filing of a class action lawsuit in the USDC for the District of Connecticut on behalf of shareholders of Fifth Street Asset Management, Inc. (“FSAM”) (NASDAQ: FSAM) who purchased shares pursuant or traceable to the Registration Statement issued in connection with the October 30, 2104 Initial Public Offering.
The complaint alleges that documents filed for the IPO contained materially false and misleading statements and/or omitted information, including that: (a) FSAM had $4.2 billion assets under management from fund Fifth Street Finance Corp. (“FSC”) 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; (b) FSAM 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 “outstanding performance,” when in fact the growth in fee revenue was largely due to the overstatement of FSC’s assets and dilutive stock offerings detrimental to the Funds’ shareholders; and (c) FSAM had “high-quality and predictable earnings,” when in fact FSAM’s revenues were unsustainable and the result of conduct placing FSAM’s management contract with FSC at risk.
If you suffered a loss in FSAM you have until March 7, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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