Hercules Capital(US:HTGC) Businesswire·2026-03-21 15:05Core Viewpoint - A class action lawsuit has been filed against Hercules Capital, Inc. (HTGC) for securities fraud, encouraging shareholders to inquire about their rights and potential recovery of losses incurred during the class period from May 1, 2025, to February 27, 2026 [1][5]. Summary by Sections Lawsuit Announcement - The Law Offices of Frank R. Cruz announced a class action lawsuit on behalf of shareholders who acquired Hercules Capital securities during the specified class period [1]. - Shareholders have until May 19, 2026, to file a lead plaintiff motion [1]. Allegations and Findings - A report published by Hunterbrook Media on February 27, 2026, alleged that Hercules Capital's deal sourcing process was inadequate, relying on external sources like Google Ventures without conducting proper due diligence [3]. - The report indicated that the valuation process at Hercules Capital was flawed, with a small team of only four people managing valuations for numerous companies, leading to insufficient checks and balances [4]. - Allegations also included that Hercules Capital misrepresented its software debt exposure and overstated its portfolio valuations, marking software debt at full value despite significant industry distress [4]. Stock Market Reaction - Following the report's release, 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]. Lawsuit Details - The class action complaint alleges that the defendants made materially false and misleading statements and failed to disclose adverse facts about the company's operations and prospects, including overstated due diligence in deal sourcing and portfolio valuation [5].