HTGC Investor Alert: Hercules Capital Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Overstated Valuation Diligence: Levi & Korsinsky
NEW YORK, April 27, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Hercules Capital, Inc. (NYSE: HTGC) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between May 1, 2025 and February 27, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Hercules Capital shares fell $1.22 per share, or 7.9%, to close at $14.21 on February 27, 2026, after a Hunterbrook media report alleged the Company's valuation process relied on a four-person team with few internal checks. The lead plaintiff deadline is May 19, 2026.
The Alleged Valuation Process Breakdown
Business Development Companies (BDCs) live and die by the credibility of their portfolio valuations. Investors in these vehicles measure Net Asset Value (NAV) as a primary indicator of portfolio health, and BDCs are statutorily limited in the debt they can take on relative to NAV and total assets. The lawsuit contends that Hercules Capital's described multistep, Board-approved valuation process masked a far thinner operation. A former member of the finance team described a valuations team of just four people in a single reporting line covering dozens of portfolio companies, with few checks or cross-team review.
How Alleged Valuation Failures Affected Reported Financials
The complaint alleges that by quarter end, the Company reported steadily rising NAV figures throughout the Class Period:
The Alleged Software Debt Misclassification
The action further claims Hercules Capital underrepresented its concentration in software debt by assigning companies that describe themselves as software businesses to other industry categories. This alleged misclassification, combined with marking software debt at par despite billions in industry-wide distressed software lending, allegedly inflated the reported health of the portfolio.
Submit your information to join this case or call (212) 363-7500.
"This case presents important questions about portfolio valuation disclosure obligations in the Business Development Company sector. When a BDC tells investors it follows a rigorous, multi-step valuation process, shareholders are entitled to rely on those representations when making investment decisions." -- Joseph E. Levi, Esq.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by May 19, 2026.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171