Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Hercules Capital To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Hercules Capital between May 1, 2025 and February 27, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Hercules Capital, Inc. (“Hercules Capital” or the “Company”) (NYSE: HTGC) and reminds investors of the May 19, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company overstated the due diligence with which it conducted its deal sourcing and/or loan origination process; (2) the Company overstated the due diligence with which it conducted its portfolio valuation process; (3) the Company reported misclassified portfolio investments; (4) as a result of the foregoing, the Company overstated and/or misrepresented its portfolio valuations; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On February 27, 2026, Hunterbrook Media published a report stating that, “according to a former Hercules analyst who worked on deal sourcing” the Company’s process for deal sourcing essentially amounted to “[g]o[ing] on the website for Google Ventures and just see what they invest in and just copy it.” The report stated, according to a former employee, deal sourcing managers “don’t want anything else,” and essentially just rely on other investors to have done due diligence, instead of doing their own.

The report continued, revealing that, “once Hercules makes the loans, the valuation process itself may warrant scrutiny,” as “[a] former member of Hercules’ finance team described a small, overstretched team with few checks in place.” The report revealed the valuations team “consisted of just four people in a single reporting line responsible for dozens of companies,” with “few checks or cross-team review.”

The report also alleged that Hercules Capital underrepresents its significant software debt exposure in part, by “assign[ing] certain businesses that describe themselves as software companies to categories outside of software.” The report also cast doubt on to the Company’s book value, which marks its software debt “at 100 cents on the dollar” despite “billions worth of [software] debt across the industry falling into distressed territory.”

On this news, Hercules Capital’s stock price fell $1.22, or 7.9%, to close at $14.21 per share on February 27, 2026, on unusually heavy trading volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Hercules Capital’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Hercules Capital class action, go to www.faruqilaw.com/HTGC or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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