Market Overview

Scott+Scott Attorneys at Law LLP Investigating Capitala Finance Corp.'s Directors and Officers for Breach of Fiduciary Duties - CPTA

Share:

NEW YORK, Feb. 11, 2019 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national securities and consumer rights litigation firm, is investigating whether certain directors and officers of Capitala Finance Corp. ("Capitala" or the "Company") (NASDAQ:CPTA) breached their fiduciary duties to the Company and its shareholders.  If you are a Capitala shareholder, you are encouraged to contact Scott+Scott at (844) 818-6982 for additional information.

Scott+Scott is investigating whether members of Capitala's board of directors made false and/or misleading statements and/or failed to disclose that: (i) Capitala Investment Advisors had been losing professional talent in both underwriting and portfolio management due to the waiving of its incentive fee; (ii) such loss of talent negatively impacted the quality of the Company's investment portfolio; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.

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, 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's share price fell from $12.81 per share on August 7 to a closing price of $8.99 on August 10 – a $3.83, or 29.90%, drop.

What You Can Do

If you are a Capitala shareholder, you may have legal claims against the Company's directors and officers.  If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or at jpettigrew@scott-scott.com or visit our case investigation page at https://scott-scott.com/investigation/capitala-finance-corp/.   

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States.  The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

Attorney Advertising

CONTACT:

Joe Pettigrew
Scott+Scott Attorneys at Law LLP
230 Park Ave, 17th Floor, New York, NY 10169
(844) 818-6982
jpettigrew@scott-scott.com

 

Cision View original content:http://www.prnewswire.com/news-releases/scottscott-attorneys-at-law-llp-investigating-capitala-finance-corps-directors-and-officers-for-breach-of-fiduciary-duties--cpta-300793433.html

SOURCE Scott+Scott Attorneys at Law LLP

View Comments and Join the Discussion!
 
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com