Capitala Finance Corp is an externally managed non-diversified closed-end management investment company that generates current income and capital appreciation through debt and equity investments. It is managed by Capitala Investment Advisors.

According to the law firm press release, the lawsuit alleges Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Capitala Investment Advisors 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. When the true details entered the market, the lawsuit claims that investors suffered damages.

On March 1, 2018, this case was transferred to the Western District of North Carolina. On May 1, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on June 19. Defendants filed a Motion to Dismiss the amended Complaint on August 14. On August 15, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint. Plaintiff filed a Notice of Intent not to File a second amended Complaint on September 16.