SAN FRANCISCO, April 3, 2026 /PRNewswire/ — Hercules Capital (NYSE: HTGC) faces a securities class action lawsuit which seeks to represent investors who purchased or otherwise acquired Hercules securities between May 1, 2025 and February 27, 2026.
The lawsuit follows Hunterbrook Media’s critical report, “The Myth of Hercules Capital,” which in part claims that Hercules’ sourcing process for deals merely copies those published on Google Ventures’ website.
The developments have prompted national shareholders rights firm Hagens Berman to investigate claims that Hercules violated the federal securities laws.
The firm urges investors in Hercules who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.
Class Period: May 1, 2025 – Feb. 27, 2026
Lead Plaintiff Deadline: May 19, 2026
Visit: www.hbsslaw.com/investor-fraud/htgc
Contact the Firm Now: [email protected]
844-916-0895
Hercules Capital, Inc. (HTGC) Securities Class Action:
Hercules is a business development company that focuses on providing financing solutions (loans) to high-growth venture capital-backed and institutional-backed companies in a variety of technology and life sciences industries.
The lawsuit is focused on the propriety of Hercules’ disclosures about its investment origination and underwriting processes.
In the past, Hercules has assured investors about the robust origination process for sourcing potential investments and the effectiveness of its due diligence process prior to underwriting its investments.
The complaint alleges that Hercules overstated the due diligence with which it conducted its deal sourcing and loan origination process, overstated the due diligence with which it conducted its portfolio valuation process, and reported misclassified portfolio investments. As a result, the lawsuit claims, Hercules overstated or misrepresented its portfolio valuations and its net asset value (“NAV”).
The company’s assurances were brought into question on February 27, 2026, when Hunterbrook published its findings.
In contrast to Hercules’ assurances, Hunterbrook claimed in part that “according to a former Hercules analyst who worked on deal sourcing” the company’s deal sourcing process essentially amounted to
“‘[g]o[ing] on the website for Google Ventures and just see what they invest in and just copy it.'”
Hunterbrook also observed that Hercules is among the most software-exposed BDCs (“[a]bout 35% of the value of the company’s loan portfolio”) and “[d]espite billions worth of such debt across the industry falling into distressed territory […] Hercules still marks its software book at 100 cents on the dollar.”
Further, according to Hunterbrook’s analysis, a growing share of Hercules’ income is “phantom” because of the company’s increasing usage of payment-in-kind (“PIK”) loans to enable its borrowers to pay interest by adding to the principal of their debt rather than paying interest on their debt.
Hunterbrook also spoke with a former member of Hercules’ finance team who reportedly provided information that Hunterbrook said raised flags about the company’s valuation process because, unlike other BDCs, the team was small and overstretched with few checks in place.
This news drove the price of Hercules shares down nearly 8% on February 27, 2026.
“We’re investigating Hunterbrook’s allegations and, if true, whether Hercules misled investors about its sourcing, underwriting, marks, PIKs, and, ultimately its NAV,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Hercules and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Hercules case and the firm’s investigation, read more »
Whistleblowers: Persons with non-public information regarding Hercules should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
SOURCE Hagens Berman Sobol Shapiro LLP