Key Takeaways:
A group of law firms, including Rosen Law Firm and The Schall Law Firm, are reminding Hercules Capital, Inc. (NYSE: HTGC) investors of a May 19, 2026 deadline to file for lead plaintiff in a securities class-action lawsuit. The suit alleges the venture capital firm made false and misleading statements regarding its loan origination and portfolio valuation process.
"If you purchased Hercules Capital securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement," said Phillip Kim, Esq. of Rosen Law Firm.
The lawsuit, filed in the U.S. District Court for the Northern District of California, covers investors who purchased Hercules Capital securities between May 1, 2025, and February 27, 2026. The core allegations claim that Hercules Capital overstated its due diligence in deal sourcing and portfolio valuation, leading to misclassified investments and inflated portfolio values. According to the complaint, these actions caused investors to suffer damages when the true details entered the market.
The legal action comes as Hercules Capital continues its regular distributions to shareholders. The company recently declared a first-quarter 2026 total cash distribution of US$0.47 per share, consisting of a US$0.40 base dividend and a US$0.07 supplemental payout, scheduled for payment on May 21, 2026. This juxtaposition of shareholder returns and legal challenges over the integrity of its reported asset quality presents a complex picture for investors.
The lawsuit puts Hercules Capital's underwriting practices under a microscope. The outcome of this legal battle could have significant financial and reputational repercussions for the company. Investors will be closely watching for the company's response to the allegations and any developments in the case leading up to the May 19 lead plaintiff deadline.
This article is for informational purposes only and does not constitute investment advice.
