Bragar Eagel & Squire Urges Hercules Capital Investors to Contact Firm Before May 19th

Law firm announces class action lawsuit against Hercules Capital over alleged portfolio misrepresentations

Apr. 8, 2026 at 9:58pm

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A photorealistic studio still life featuring a stack of financial documents, a calculator, and a pen arranged on a clean white background, conveying a sense of corporate strategy and financial risk.A meticulous still life captures the precision and gravity of the legal battle over Hercules Capital's portfolio valuation practices.NYC Today

Bragar Eagel & Squire, P.C., a national stockholder rights law firm, has filed a class action lawsuit against Hercules Capital, Inc. (NYSE:HTGC) on behalf of investors who purchased or acquired Hercules Capital securities between May 1, 2025 and February 27, 2026. The lawsuit alleges that Hercules Capital overstated its due diligence processes for deal sourcing, loan origination, and portfolio valuation, and misclassified certain portfolio investments, leading to overstated and misrepresented portfolio valuations.

Why it matters

This lawsuit represents a significant legal challenge for Hercules Capital, a prominent business development company, and could have broader implications for transparency and accountability in the alternative investment industry. The outcome could impact investor confidence and the company's future operations.

The details

The lawsuit claims that throughout the class period, Hercules Capital made false and/or misleading statements and failed to disclose that it overstated the due diligence in its deal sourcing, loan origination, and portfolio valuation processes, as well as misclassified certain portfolio investments. This allegedly led to the overstatement and misrepresentation of the company's portfolio valuations. Investors who purchased Hercules Capital securities during this period and suffered losses are encouraged to contact Bragar Eagel & Squire to discuss their legal options.

  • The class period is from May 1, 2025 to February 27, 2026.
  • Investors have until May 19, 2026 to apply to the court to be appointed as lead plaintiff in the lawsuit.

The players

Bragar Eagel & Squire, P.C.

A nationally recognized stockholder rights law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation.

Hercules Capital, Inc.

A business development company that provides debt and equity financing to venture capital and private equity backed technology companies.

Brandon Walker

A litigation partner at Bragar Eagel & Squire who is encouraging investors who suffered losses in Hercules Capital to contact him directly.

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What they’re saying

“If you purchased or acquired Hercules Capital securities between May 1, 2025 and February 27, 2026, and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.”

— Brandon Walker, Litigation Partner, Bragar Eagel & Squire

What’s next

The judge will decide on May 19, 2026 whether to appoint a lead plaintiff in the class action lawsuit against Hercules Capital.

The takeaway

This lawsuit highlights the importance of transparency and accurate reporting in the alternative investment industry, as investors rely on these disclosures to make informed decisions. The outcome could set a precedent for how business development companies handle their portfolio valuation processes and disclosures.