Hercules Capital, Inc. (NYSE: HTGC) faces a securities class action lawsuit filed in the U.S. District Court for the Northern District of California, naming CEO Scott Bluestein and CFO Seth H. Meyer as individual defendants.

The lawsuit covers a class period from May 1, 2025 through February 27, 2026. HTGC shares fell $1.22 per share, or 7.9%, on February 27, 2026, closing at $14.21 on heavy trading volume.

The complaint alleges that both executives had authority to control the contents of Hercules Capital's SEC filings, press releases, and investor presentations during the class period. The lawsuit claims they possessed material non-public information about the company's deal sourcing practices, valuation team staffing, and software debt classification.

According to the filing, Bluestein headed an investment origination team of more than 50 professionals and oversaw the deal sourcing pipeline described in SEC filings. Meyer, as CFO, was responsible for financial reporting accuracy, including net asset value calculations and portfolio fair value determinations.

The lawsuit references Sarbanes-Oxley Act Sections 302 and 906, under which both executives personally certified the accuracy of the company's quarterly 10-Q filings and the fiscal year 2025 10-K annual report. These certifications covered valuation procedures and deal origination disclosures that the complaint challenges as materially misleading.

The court has set May 19, 2026 as the deadline for lead plaintiff appointment applications. The case was announced by SueWallSt, a law firm specializing in shareholder rights litigation.

The lawsuit seeks to hold the executives liable under Section 20(a) control person provisions for alleged misleading statements about the company's underwriting and origination processes.