Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Triangle Capital Corporation

Oklahoma City, OK (November 22, 2017) – On November 21, 2017, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Triangle Capital Corporation (NYSE: TCAP). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 7, 2014 through November 1, 2017. More 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. 

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 $2.57 per share, to close at $9.68 per share by November 2, 2017.

Plaintiff seeks to recover damages on behalf of all Triangle Capital Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, January 22, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification. Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.