The shareholder derivative actions brought on behalf of Fifth Street Finance Corp. (“FSC”), a publicly traded business development company (“BDC”), alleged that insiders at FSC’s external manager, Fifth Street Asset Management, Inc. (“FSAM”), caused FSC to take actions contrary to its interests in order to inflate FSAM’s stock price before FSAM’s November 2014 initial public offering. Hynes & Hernandez, LLC was part of the litigation team that negotiated a settlement conferring substantial monetary and non-monetary benefits on FSC. In particular, the settlement secured advisory fee enhancements expected to generate monetary benefits worth at least $30 million to FSC. In addition, the settlement provided for corporate governance, oversight, and conflicts management enhancements to substantially improve the compliance control environment at FSC and FSAM. For example, FSC agreed to adopt measures that will: (i) enhance the independence and rigor of FSC Board oversight, including the appointment of two new independent directors, and ensure that FSAM insiders are held accountable to FSC’s outside directors; (ii) increase the rigor of FSC’s policies and procedures for valuing investments and credits, including enhanced direct Board oversight, more rigorous review of troubled credits, and greater transparency to ensure reasonable valuation and revenue recognition, and timely disclosure of impairments; (iii) create a Risk and Conflicts Committee to address actual and potential conflicts of interest between FSC and FSAM and FSAM insiders, particularly with respect to co-investments, the Investment Advisory Agreement (“IAA”), and FSC’s asset valuation procedures; (iv) establish stock ownership requirements that align FSC’s directors’ interests with the interests of FSC shareholders; and (v) require the formal retention of and consultation with independent outside counsel to enhance the outside directors’ ability to assess and mitigate conflicts of interest, particularly with respect to the annual review and negotiation of the IAA with FSAM.