Noteworthy Case

Fifth Street Finance Corp.

Robbins LLP served as lead counsel in shareholder derivative litigation on behalf of Fifth Street Finance Corp., which alleged breaches of fiduciary duty and other violations of the law arising out of Fifth Street’s relationship with its investment advisor, FSAM. Specifically, plaintiffs asserted that certain Fifth Street and FSAM officers and directors caused Fifth Street to pursue reckless asset growth strategies, employ aggressive accounting and financial reporting practices, and pay excessive fees to its investment advisor to inflate the perceived value of FSAM prior to FSAM’s initial public filing. Following extensive factual investigation, the exchange of enormous amounts of information, and protracted settlement negotiations and mediations, the firm negotiated an outstanding result for Fifth Street and its stockholders, which included advisory fee reductions worth at least $30 million to the company, and comprehensive corporate governance, oversight, and conflicts management enhancements to substantially improve the compliance control environment at Fifth Street and reduce the likelihood of a recurrence of similar wrongdoing in the future.

In re Fifth Street Finance Corp. Shareholder Derivative Litigation, Lead Case No. 3:15-cv-01795-RNC (D. Conn. Dec. 13, 2016)

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