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Capitala Finance Corporation: Class Action

 Capitala Finance Corporation

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Capitala Finance Corporation (NASDAQ:CPTA) in connection to alleged violations of securities laws by CPTA. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Capitala Finance Corporation from January 4, 2016 until October 12, 2017.

The class action complaint specifically alleges that during the period in question, CPTA might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that Capital Investment Advisors, which manages the company’s investment activities, was suffering talent losses in its underwriting operations as well as its portfolio management operations; that these losses resulted from Capitala’s waiver of its previously offered incentive fee; that these losses had an adverse effect on the company’s portfolio; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when true facts came to light, investors suffered losses.

According to the company’s website, Capitala Finance Corporation is a business development company managed by Capitala Group, a “leading provider of capital to lower and traditional middle-market companies through its family of credit focused funds.” Capitala Group’s funds have engaged in transactions amounting to $1 billion in investments in numerous industries in North America, according to the website. The company manages capital in both the public and private sectors, and its other funds include Capital South SBIC Fund (CSGF) and Capitala Private Credit Fund (PCFV). Capitala Group has offices in Charlotte, North Carolina; Los Angeles, California; Fort Lauderdale, Florida; Raleigh, North Carolina; and Atlanta, Georgia.

A class action lawsuit has already been filed in connection with Capitala Finance Corporation. If you wish to serve as lead plaintiff in the CPTA lawsuit, you must move the Court no later than February 26, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.

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