Feb. 05, 2013 (Shareholders Foundation) -- An investigation on behalf of current long-term stockholders of shares Fifth Street Finance Corp. (NASDAQ:FSC) was announced concerning whether certain Fifth Street Finance officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Fifth Street Finance officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for an amendment to Fifth Street Finances Restated Certificate of Incorporation.

In the Proxy Statement filed by Fifth Street Finance Corp. with the Securities and Exchange Commission the Board of Directors recommends that Fifth Street Finances shareholders vote to approve an amendment to the Fifth Street Finances Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 150,000,000 to 250,000,000 shares.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on NASDAQ:FSC common stock.

Fifth Street Finance Corp. (NASDAQ:FSC) reported that its Total Revenue rose from $49.79 million for the 12 months period that ended on Sept. 30, 2009 to $165.12 million for the 12 months period that ended on Sept. 30, 2012, and that its Net Income for those time periods surged from $6.19 million to $79.40 million.

Shares of Fifth Street Finance Corp. (NASDAQ:FSC) traded in 2011 as high as $13.95 per share and in 2012 as low as $9.02 per share.

On Jan. 30, 2013, NASDAQ:FSC shares closed at $10.75 per share.