Hercules Capital(US:HTGC) Businesswire·2026-03-20 22:35Core Viewpoint - A class action lawsuit has been filed against Hercules Capital, Inc. for securities fraud, alleging that the company made materially false statements and failed to disclose adverse facts about its business operations and financial health during the class period from May 1, 2025, to February 27, 2026 [1][5]. Summary by Sections Lawsuit Details - The lawsuit is filed in the United States District Court for the Northern District of California, under the case name Taylor v. Hercules Capital, Inc., and claims are made under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1]. - Investors have 60 days from the notice date to move the court to serve as lead plaintiff in this action [2][6]. Allegations Against Hercules Capital - A report published on February 27, 2026, by Hunterbrook Media claims that Hercules Capital's deal sourcing process was inadequate, relying on external sources like Google Ventures instead of conducting its own due diligence [2]. - The report also highlighted concerns regarding the company's valuation process, indicating that a small team with limited checks was responsible for valuations, which may have led to misrepresentations of the company's financial health [3]. - Allegations include that Hercules Capital misclassified its portfolio investments and overstated its portfolio valuations, particularly regarding software debt, which is marked at full value despite significant industry distress [3][5]. Market Reaction - Following the publication of the report, Hercules Capital's stock price dropped by $1.22, or 7.9%, closing at $14.21 per share on February 27, 2026, with unusually high trading volume [3].