Triangle Capital Corporation
- Company Name
- Triangle Capital Corporation
- Stock Symbol
- Class Period
- May 7, 2014 to November 1, 2017
- Motion Deadline
- January 20, 2018
- Southern District of New York
On November 21, 2017, Robbins Geller Rudman & Dowd LLP filed a complaint alleging violations of the federal securities laws by Triangle Capital Corporation and certain of its officers and/or directors. The class action was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Triangle securities between May 7, 2014 and November 1, 2017 (the “Class Period”).
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST TRIANGLE CAPITAL CORPORATION
New York – November 21, 2017 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/triangle/) today announced that a class action has been commenced on behalf of purchasers of Triangle Capital Corporation (“Triangle”) (NASDAQ:TCAP) common stock during the period between May 7, 2014 and November 1, 2017 (the “Class Period”). This action was filed in the Southern District of New York and is captioned Dagher v. Triangle Capital Corporation, et al., No. 17-cv-9102.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/triangle/. 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.
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.
Plaintiff seeks to recover damages on behalf of all purchasers of Triangle common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as a leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of shareholder class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld