Stockholder Notice: Robbins LLP Informs Investors of the Hercules Capital, Inc. Class Action Lawsuit

SAN DIEGO--(BUSINESS WIRE)--Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Hercules Capital, Inc. (NYSE: HTGC) securities between May 1, 2025 and February 27, 2026. Hercules Capital is a private credit firm, also known a Business Development Company, which specializes in making private loans to companies.

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The Allegations: Robbins LLP is Investigating Allegations that Hercules Capital, Inc. (HTGC) Misled Investors Regarding its Due Diligence in Deal Sourcing, Loan Originating, and Valuation

According to the complaint, during the class period, defendants failed to disclose to investors: (1) the Company overstated the due diligence with which it conducted its deal sourcing and/or loan origination process; (2) the Company overstated the due diligence with which it conducted its portfolio valuation process; (3) the Company reported misclassified portfolio investments; (4) as a result of the foregoing, the Company overstated and/or misrepresented its portfolio valuations; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Plaintiff alleges that on February 27, 2026, Hunterbrook Media, an investment focused media reporting outlet, published a report entitled “The Myth of Hercules Capital.” The report stated that, “according to a former Hercules analyst who worked on deal sourcing” the Company’s process for deal sourcing essentially amounted to “[g]o[ing] on the website for Google Ventures and just see what they invest in and just copy it.” The report stated, according to a former employee, deal sourcing managers “don’t want anything else,” and essentially just rely on other investors to have done due diligence, instead of doing their own. The report continued, revealing that, “once Hercules makes the loans, the valuation process itself may warrant scrutiny,” as “[a] former member of Hercules’ finance team described a small overstretched team with few checks in place.” This second former employee revealed the valuations team “consisted of just four people in a single reporting line responsible for dozens of companies,” with “few checks or cross-team review.” The former employee noted this was contrary to how things were done at other public companies where, in contrast “[t]here is a strong push to do things the right way, to reinvent, to make sure that we’re double-checking, triple-checking.” The report stated the former employee found this was not the case at Hercules. The report also alleged that Hercules Capital underrepresents its significant software debt exposure. The report stated the Company does this, in part, by “assign[ing] certain businesses that describe themselves as software companies to categories outside of software.” The report also cast doubt on to the Company’s book value, which marks its software debt “at 100 cents on the dollar” despite “billions worth of [software] debt across the industry falling into distressed territory.” On this news, Hercules’s stock price fell $1.22, or 7.9%, to close at $14.21 per share on February 27, 2026.

What Now: You may be eligible to participate in the class action against Hercules Capital, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.

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