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Capitala Finance Corporation (CPTA)



Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Capitala Finance Corporation To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Capitala Finance Corporation (“Capitala Finance” or the “Company”) (NASDAQ:CPTA) of the February 26, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Capitala Finance stock or options between January 4, 2016 and August 7, 2017 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you.  You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Capitala Finance securities between January 4, 2016 and August 7, 2017 (the “Class Period”).  The case, Laurence Paskowitz v. Capitala Finance Corp. et al, No. 2.17-cv-09251 was filed on December 28, 2017, and assigned to Judge Michael Walter Fitzgerald.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Capitala Investment Advisors, LLC had been losing professional talent in both underwriting and portfolio management due to the waiving of its incentive fee; (2) such loss of talent negatively impacted the quality of the Company’s investment portfolio; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Specifically, during aftermarket hours on August 7, 2017, the Company revealed that six of its investments were on non-accrual status—twice as many as it had the previous quarter.  Then, on August 8, 2017, the company’s Chief Executive Officer, Joseph B. Alala III, revealed that Capitala Investment Advisors had been losing professional talent in underwriting and portfolio management since waiving its incentive fee, which gave rise to a rising number of nonaccrual investments.

On this news and over the next three trading days, Capitala Finance’s share price fell from $12.81 per share on August 7, 2017 to a closing price of $8.99 on August 10, 2017—a $3.83 or a 29.90% drop.

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  • Case:
    Capitala Finance Corporation (CPTA)

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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330


Case Details


  • 02/02/2018

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