Hercules Capital(US:HTGC) TMX Newsfile·2026-03-30 22:33Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Hercules Capital, Inc. due to allegations of violations of federal securities laws, encouraging affected investors to contact them for legal options [2][4]. Group 1: Allegations Against Hercules Capital - The complaint alleges that Hercules Capital and its executives made false and misleading statements regarding their due diligence in deal sourcing and loan origination processes [4]. - It is claimed that the company overstated its portfolio valuations and misclassified portfolio investments, leading to materially misleading statements about its business and operations [4]. - A report from Hunterbrook Media suggests that Hercules Capital's deal sourcing relied heavily on copying investments from Google Ventures without conducting proper due diligence [5]. Group 2: Valuation and Financial Practices - Concerns were raised about the valuation process at Hercules Capital, which reportedly involved a small team with inadequate checks, responsible for numerous companies [6]. - The company allegedly underrepresents its software debt exposure by categorizing certain software companies outside of the software category, despite significant industry distress [6]. - Following these revelations, Hercules Capital's stock price dropped by $1.22, or 7.9%, closing at $14.21 per share on February 27, 2026, amid heavy trading volume [6]. Group 3: Legal Proceedings and Investor Actions - Investors who purchased securities in Hercules Capital between May 1, 2025, and February 27, 2026, are reminded of the May 19, 2026, deadline to seek the role of lead plaintiff in the federal securities class action [2][7]. - Faruqi & Faruqi encourages anyone with information regarding Hercules Capital's conduct, including whistleblowers and former employees, to come forward [8].