Hercules Capital(US:HTGC) Businesswire·2026-03-23 17:33Core Viewpoint - Hercules Capital, Inc. is facing a securities fraud lawsuit due to allegations of misleading statements and inadequate due diligence in its deal sourcing and portfolio valuation processes, leading to significant financial losses for shareholders [2][4][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 its own due diligence [2]. - The report also highlights concerns regarding the company's valuation process, indicating a small team with insufficient checks, which may lead to inaccurate portfolio valuations [3]. - Allegations include misclassification of portfolio investments and overstating the company's financial health, particularly regarding software debt, which is marked at full value despite industry-wide distress [3][5]. Group 2: Stock Market Reaction - Following the release of the report on February 27, 2026, Hercules Capital's stock price dropped by $1.22, or 7.9%, closing at $14.21 per share, with unusually high trading volume [3]. Group 3: Legal Proceedings - Shareholders who suffered losses during the class period from May 1, 2025, to February 27, 2026, are encouraged to file a lead plaintiff motion by the deadline of May 19, 2026 [1][6].