BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Capitala Finance Corp. (“Capitala” or the “Company”) (NASDAQ: CPTA) investors concerning the Company and its officers’ possible violations of federal securities laws.
On January 4, 2016, Capitala announced that Capitala Investment Advisors, LLC, the affiliate that manages the Company's investment activities, had agreed to waive its quarterly incentive fee. On August 7, 2017, Capitala disclosed that six of its investments were on non-accrual status—twice as many as in the previous quarter. Then on August 8, 2017, the Company disclosed that Capitala Investment Advisors had been losing professional talent in underwriting and portfolio management since waiving its incentive fee, which had caused an increase in the number of the Company's nonaccrual investments.
On this news, shares of Capital fell nearly 30%, over the next three trading days to close at $8.99 on August 10, 2017, thereby injuring investors.
If you purchased Capitala securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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