SAN DIEGO & RALEIGH, NC--(BUSINESS WIRE)-- Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Triangle Capital Corporation (NYSE: TCAP). The complaint is brought on behalf of all purchasers of Triangle securities between May 7, 2014 and November 1, 2017, for alleged violations of the Securities Exchange Act of 1934 by Triangle's officers and directors. Triangle is a business development company that provides financing to small and mid-sized companies in the U.S.
View this information on the law firm's Shareholder Rights Blog:
Triangle Accused of Overstating Investment Portfolio
According to the complaint, throughout the class period, Triangle issued a series of public statements touting positive financial results and an optimistic investment portfolio for the company. For example, the company's Chief Executive Officer, Ashton Poole, stated in an a February 2016 press release that "We are pleased to report a strong finish to 2015…As we move into 2016, we believe our investing platform is well positioned to continue capitalizing on the attractive opportunities the lower middle market provides." However, the complaint alleges that Triangle officials knew as early as 2013, but failed to disclose, that the company should move away from mezzanine loan deals due to changes in the market that no longer made these investments attractive risk-reward opportunities. As a result of the poor quality investments and deficient underwriting practices, the company's entire vintage for 2014 and 2015 investments were at substantial risk of non-accrual.
On November 1, 2017, Triangle issued a press release announcing its financial results for the quarter ended September 30, 2017. The release revealed that the company's investment portfolio had declined 7%, and suffered $8.9 million in net realized losses and $65.8 million in net unrealized depreciation. Furthermore, Triangle revealed that due to low earnings they would be slashing its quarterly dividend by 33% per share from the previous quarter. On this news, Triangle stock fell $2.57 per share, or nearly 21%, to close at $9.68 per share on November 2, 2017.
Triangle Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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Source: Robbins Arroyo LLP