Hercules Capital (HTGC) Faces Securities Class Action After Short Seller Claims Company Copied Google Ventures, Questions Marks and PIKs -- Hagens Berman
View original at globenewswire.comHercules Capital (HTGC) Faces Securities Class Action After Short Seller Claims Company Copied Google Ventures, Questions Marks and PIKs -- Hagens Berman SAN FRANCISCO, March 25, 2026 (GLOBE NEWSWIRE) -- Hercules Capital (NYSE: HTGC) faces a securities class action lawsuit which seeks to represent investors who purchas…
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A growing share of Hercules' income is phantom because of the company's increasing usage of payment-in-kind loans
60% confidenceHercules overstated the due diligence with which it conducted its deal sourcing and loan origination process, overstated the due diligence in its portfolio valuation process, and reported misclassified portfolio investments
60% confidenceDespite billions worth of software debt across the industry falling into distressed territory, Hercules still marks its software book at 100 cents on the dollar
60% confidenceAbout 35% of the value of Hercules' loan portfolio is software-exposed
60% confidenceHercules has assured investors about the robust origination process for sourcing potential investments and the effectiveness of its due diligence process
60% confidenceInvestigating whether Hercules misled investors about its sourcing, underwriting, marks, PIKs, and ultimately its NAV
60% confidenceHercules' finance team was small and overstretched with few checks in place compared to other BDCs
60% confidenceHercules overstated or misrepresented its portfolio valuations and its net asset value
60% confidenceHercules' deal sourcing process essentially amounted to going on the website for Google Ventures and just seeing what they invest in and copying it
60% confidence