February 17, 2017 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.
November 9, 2016 - The court preliminarily approved the settlement.

September 26, 2016 - The court denied defendants' motion to dismiss without prejudice.

September 23, 2016 - Parties filed a stipulation of settlement.

May 31, 2016 - Defendants filed a motion to dismiss.

April 4, 2016 - The lead plaintiff filed an amended consolidated complaint.

February 1, 2016 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

November 30, 2015 - Lead plaintiff motions were filed.

October 1, 2015 - An investor in shares of Fifth Street Finance Corp (NASDAQ: FSC) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Fifth Street Finance Corp in connection with certain allegedly false and misleading statements made between July 7, 2014 and February 6, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Fifth Street Finance Corp (NASDAQ: FSC) common shares between July 7, 2014 and February 6, 2015, that the Fifth Street Finance Corp, Fifth Street Asset Management Inc and certain of their officers and directors violated Federal Securities Laws. The plaintiff claims that between July 7, 2014 and February 6, 2015, defendants allegedly engaged in a fraudulent scheme and course of business designed to artificially inflate Fifth Street Finance Corp's assets and investment income in order to increase Fifth Street Asset Management Inc's revenue. More specifically, the plaintiff alleges that, among other things, defendants pushed Fifth Street Finance Corp into increasingly risky, speculative investments at unsustainable leverage levels, delayed writing down impaired investments in order to create the appearance of increasing revenues for Fifth Street Asset Management Inc, and systematically overstated the income generated by Fifth Street Finance Corp's investments and the fair value of its portfolio, while simultaneously providing investors and the market with false and misleading portrayals of Fifth Street Finance Corp's business trends and expected performance.

Fifth Street Finance Corp reported that its Total Revenue rose from $221.61 million for the 12 months period that ended on September 30, 2013 to $293.95 million for the 12 months period that ended on September 30, 2014 and that its respective Net Income increased from $101.82 million to $112.53 million.

The plaintiff says that on October 29, 2014, defendants sold 6 million Fifth Street Asset Management Inc shares for $17 per share, with Fifth Street Finance Corp's founder and one-time Chairman and CEO Leonard M. Tannenbaum and his associates receiving tens of millions of dollars from the sale of their shares in the initial public offering ( IPO ).

Then, on February 9, 2015, Fifth Street Finance Corp reported its fiscal results for the quarter ended December 31, 2014 – the same quarter in which defendants conducted the Fifth Street Asset Management Inc IPO.

The plaintiff claims that Fifth Street Finance Corp revealed that, around the time its executives were taking Fifth Street Asset Management Inc public, it had moved $106 million worth of investments to non-accrual status with an additional $17 million likely to be designated non-accrual in the subsequent quarter, which together constituted about 5% of the Company's entire debt investment portfolio on a cost basis and that the Company also revealed that, even though the total assets of Fifth Street Finance Corp's investment portfolio had continued to increase to nearly $3 billion by quarter end, the net investment income received by the Company had actually decreased by 6% compared to the prior quarter. The plaintiff claims that despite having announced a 10% dividend increase only four months before taking Fifth Street Asset Management Inc public, Fifth Street Finance Corp declared that it would issue zero dividends for February 2015, while decreasing future dividend payments by more than 30% as part of a more conservative dividend policy.

Shares of Fifth Street Finance Corp (NASDAQ: FSC) declined from $9.95 per share on July 3, 2015, to as low as $6.01 per share on August 24, 2015.