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Provided by AGPNEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- From a closing price of $15.43 on February 26, 2026, Hercules Capital, Inc. (NYSE: HTGC) shares plummeted to $14.21 the following day, erasing $1.22 per share in value after a corrective report exposed what the lawsuit alleges is fundamental weakness in the Company's operations. Find out if you qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
The 7.9% single-day decline occurred on unusually heavy trading volume, as the market rapidly repriced HTGC shares to remove what the securities action alleges was artificial inflation embedded in the stock throughout the Class Period of May 1, 2025 through February 27, 2026. To be considered for lead plaintiff, investors must file by May 19, 2026.
The February 27, 2026 After-Hours Repricing Event
At approximately 11:00 a.m. EST on February 27, 2026, Hunterbrook Media published "The Myth of Hercules Capital." The report alleged that the Company's deal sourcing process amounted to copying investments from Google Ventures' website, that a four-person valuation team lacked adequate checks, and that software debt exposure was hidden through sector misclassification. The market's swift reaction stripped $1.22 from each share of HTGC.
Alleged Investor Damages and Loss Causation
The securities action maintains that throughout the Class Period, HTGC shares traded at artificially inflated prices because investors relied on representations about disciplined underwriting, rigorous due diligence, and a multi-step Board-approved valuation process. The lawsuit asserts these representations lacked a reasonable basis. Key alleged damages factors include:
The Alleged Artificial Inflation Removal
Plaintiffs assert that the $1.22 per-share decline represents the partial removal of artificial inflation that had been maintained by repeated statements touting "disciplined underwriting" and rigorous origination. The filing states that once the market learned the true nature of these processes, the inflation dissipated rapidly.
Join the HTGC recovery action or call Joseph E. Levi, Esq. at (212) 363-7500.
"When companies fail to disclose material information, shareholders may suffer significant losses. The speed and magnitude of the February 27 repricing suggests the market viewed these revelations as highly material to Hercules Capital's valuation." -- 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.
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
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