Triangle Capital Corporation (Nasdaq: TCAP)
A class action has been commenced on behalf of purchasers of Triangle Capital Corporation (Nasdaq: TCAP) common stock between May 7, 2014 to November 1, 2017 (the “Class Period”).
The complaint charges Triangle and certain of its current and former officers and directors with violations of the Securities Exchange Act of 1934. Triangle is a business development company that provides customized financing to lower middle market companies located primarily in the United States.
The complaint alleges that during the Class Period, defendants made false and misleading statements and failed to disclose adverse information regarding Triangle’s business and prospects. Specifically, the complaint alleges that defendants failed to disclose that, as early as 2013, Triangle’s investment professionals had internally recommended moving away from mezzanine loan deals due to changes in the market that no longer made these investments attractive risk-reward opportunities. As a result, the Company’s entire vintage of 2014 and 2015 investments were at substantial risk of non-accrual because of the poor quality of the investments and deficient underwriting practices in place at the time of the investments. As a consequence, Triangle’s business, prospects and ability to maintain its dividend level were materially impaired. As a result of defendants’ false statements and omissions during the Class Period, the price of Triangle stock was artificially inflated, reaching a high of more than $28 per share.
On August 2, 2017, Triangle announced its financial results for the quarter ended June 30, 2017, revealing that the amount of full non-accrual assets in the Company’s portfolio had increased to 5.4% and 2.5% as a percentage of the Company’s total portfolio at cost and at fair value, respectively. Moreover, the Company disclosed that it had moved two investments to payment-in-kind non-accrual status during the quarter. On this news, the price of Triangle stock declined nearly 15%, or $2.56 per share, to close at $14.63 per share by August 4, 2017.
Then, on November 1, 2017, Triangle announced its financial results for the quarter ended September 30, 2017, revealing that the fair value of the Company’s investment portfolio had declined nearly 7% from the prior quarter and that it had suffered $8.9 million in net realized losses and $65.8 million in net unrealized depreciation to its portfolio during the quarter. The Company also disclosed that it had moved seven investments to full non-accrual status during the quarter and that the amount of investments on non-accrual had ballooned to 13.4% and 4.7% of the Company’s total portfolio at cost and at fair value, respectively. On this news, the price of Triangle stock declined nearly 21%, or $2.57 per share, to close at $9.68 per share by November 2, 2017.
If you are a current shareholder and purchased stock between May 7, 2014 to November 1, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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