A securities class action has been filed against Netcapital Inc. (NCPL) on behalf of purchasers of the securities of Netcapital between December 15, 2021 through September 3, 2026. This case has been filed in the USDC – MA.
According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that: (1) Over the Class Period, Netcapital improperly recognized material revenues from what were, in reality, sham consulting agreements with entities controlled by Defendant John Fanning; (2) The consulting agreements were backdated and in some cases forged, and Netcapital Advisors provided little if any meaningful consulting services; (3) The Portfolio Company transactions were improperly undisclosed related-party transactions involving John Fanning; (4) Netcapital’s certifications pursuant to the Sarbanes-Oxley Act of 2002 were false; and (5) as a result, defendants’ statements about Netcapital’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.