Hercules Capital Sued for Alleged Misleading Investors on Software Debt Risks

A securities fraud class action targets Hercules Capital, accusing the company of misleading investors about its risk controls and valuations. The lawsuit alleges that Hercules hid its exposure to software debt and misrepresented its due diligence process, with former employees describing a lack of checks and cross-team review. The stock fell 7.9% after a report by Hunterbrook Media highlighted the allegations, raising questions about the company's internal controls and the accuracy of its disclosures.