NEW YORK, Feb. 9, 2018 /PRNewswire/ -- 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, click here:
www.faruqilaw.com/CPTA. 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.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who
is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of
the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and
remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff
or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Capitala Finance's conduct to contact the firm,
including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome
with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated
in a confidential manner.
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SOURCE Faruqi & Faruqi, LLP