| COMPANY |
Triangle Capital Corporation |
| COURT |
United States District Court for the Eastern District of North Carolina |
| CASE NUMBER |
18-cv-00015 |
| JUDGE |
The Hon. Louise W. Flanagan |
| CLASS PERIOD |
May 7, 2014 - November 1, 2017 |
| SECURITY TYPE |
Common stock |
Case Background:
On November 21, 2017, the initial complaint in this securities class action was filed against Triangle Capital Corporation (“Triangle” or the “Company”), and certain of Triangle’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action on behalf of all persons or entities who purchased or otherwise acquired Triangle securities between May 7, 2014 and November 1, 2017, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and failed to disclose material adverse information regarding the Company’s business, the productivity and strength of its portfolio and its internal controls. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Triangle’s investment professionals internally recommended moving away from mezzanine loan deals due to changes in the market occurring as early as 2013, which no longer made those investments attractive risk-reward opportunities; (2) the Company’s former CEO, Defendant Garland S. Tucker, III, ignoring the advice of Triangle’s investment professionals, caused the Company to continue to disproportionately invest in mezzanine debt to chase higher short-term yields, despite the increasingly poor quality of the loans and increasing risk of default and nonaccruals, and had sole authority to approve or reject investment opportunities on behalf of Triangle; (3) the Company’s vintage of 2014 and 2015 investments was at substantial risk of non-accrual due to the poorer investment quality and deficient underwriting practices in place when the investments were made; (4) Triangle failed to implement effective underwriting 4 policies and practices to ensure that it received appropriate risk-adjusted returns on its investments; and (v) as a result of the foregoing, Triangle shares traded at artificially inflated prices during the Class Period and class members suffered significant losses and damages.
Current Status of Case:
On March 7, 2019, the Court granted Defendants’ Motion to Dismiss. Plaintiffs filed a Notice of Appeal on October 17, 2019 to the U.S. Court of Appeals for the Fourth Circuit. On February 22, 2021, the Fourth Circuit Court of Appeals affirmed the District Court’s dismissal of the action. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; ; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.