Triangle Capital Corporation investors may receive additional information about the case by clicking the link "Submit your information" above.
According to the complaint, Triangle is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States.
The Class Period commences on May 7, 2014, when Triangle issued a press release announcing its financial results for the quarter ended March 31, 2014. The complaint alleges that 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.
Following this news, the price of Triangle stock declined nearly 21%, or $2.57 per share, to close at $9.68 per share by November 2, 2017.
The complaint alleges that during the Class Period, defendants made false and misleading statements and failed to disclose that: (a) 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; (b) that the company’s former CEO, defendant Tucker, had ignored the advice of Triangle’s investment professionals to chase higher short-term yields by causing Triangle to invest in mezzanine debt despite the poor quality of the loans and their increased risk of defaults and non-accruals; (c) that the company’s entire vintage of 2014 and 2015 investments were at substantial risk of non-accrual as a result of the poor quality of the investments and deficient underwriting practices in place at the time of the investments; (d) that more than 13% of Triangle’s investment portfolio at cost was at risk of non-accrual and, thus, the fair value of the company’s asset portfolio was artificially inflated; (e) that Triangle had materially understated the number of loans performing below expectations and/or in non-accrual and had delayed writing down impaired investments; (f) that Triangle failed to implement effective underwriting policies and practices to ensure it received appropriate risk-adjusted returns on its investments; and (g) that, as a result of the above, Triangle’s business, prospects and ability to maintain its dividend level of $0.45 were materially impaired.
If you are a member of the class described above, you may no later than January 22, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. 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 toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.