Hercules Capital(US:HTGC) Businesswire·2026-03-21 00:34Core Viewpoint - A class action lawsuit has been filed against Hercules Capital, Inc. (HTGC) 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]. Group 1: Allegations and Findings - A report by Hunterbrook Media claims that Hercules Capital's deal sourcing process is inadequate, relying on external sources like Google Ventures instead of conducting thorough due diligence [3]. - The report also highlights concerns regarding the company's valuation process, indicating that a small team with limited checks is responsible for valuations, which may lead to inaccuracies [4]. - Allegations include that Hercules Capital misclassifies its software debt exposure and overstates its portfolio valuations, with significant software debt being marked at full value despite industry-wide distress [4][6]. Group 2: 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 [4]. Group 3: Legal Proceedings - Investors who purchased Hercules Capital securities during the class period have until May 19, 2026, to file a lead plaintiff motion in the ongoing class action lawsuit [1].