NEW YORK, Oct. 14, 2026 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”), a nationally recognized securities litigation law firm, announces that a class action lawsuit has been filed on behalf of purchasers of securities of Netcapital Inc. (NASDAQ: NCPL) (“Netcapital” or the “Company”) between December 15, 2021 and September 3, 2026, both dates inclusive (the Class Period).
Investors who purchased Netcapital shares during the class period and suffered losses may be eligible to participate in the case, with the lead-plaintiff deadline set for December 7, 2026
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According to the filed complaint, defendants made false and/or misleading statements and/or failed to disclose that:
- Over the Class Period, Netcapital improperly recognized material revenues from what were sham consulting agreements with entities controlled by Defendant John Fanning;
- The consulting agreements were backdated and, in some cases, forged, and Netcapital Advisors provided little if any meaningful consulting services;
- The Portfolio Company transactions were improperly undisclosed related party transactions involving John Fanning;
- Netcapital's certifications pursuant to the Sarbanes-Oxley Act of 2002 were false; and
- 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.
Netcapital describes itself operating an SEC-registered portal for small companies raising investor capital through Internet-based crowdfunding under Regulation Crowdfunding and provides consulting services to companies seeking to conduct crowdfunding securities offerings.
On August 10, 2026, the SEC filed a complaint against Netcapital and its executives, charging Defendants with a conducting a fraudulent scheme to overstate Netcapital’s revenue through sham, backdated, and in some cases forged consulting agreements between Netcapital advisors and at least eleven Portfolio Companies controlled by Fanning, the CFO’s husband, former CEO of Napster, and who serves on the Company’s advisory board. On this news, Netcapital stock declined by just over $0.05 or 12.8% to close at $0.3501 per share.
On August 17, 2026, Netcapital filed a current report on Form 8-K, disclosing that its independent registered public accounting firm, Fruci & Associates II, PLLC, had resigned following the SEC litigation against the Company. On this news, Netcapital stock declined 28.6% to close at $0.228.
On September 3, 2026, Netcapital filed a current report on Form 8-K, revealing that on August 27, 2026, Avi Liss had resigned as a member of the Board of Directors and from all committees of the Board including the Audit Committee. In the resignation letter, attached as an Exhibit to the Form 8-K, Liss explained “in light of the serious allegations recently asserted against the Company and certain current and former officers, directors, and other individuals” in the SEC Complaint. On this news, Netcapital stock declined $0.0512 per share or 8.14%, to close at $0.5774 per share on September 4, 2026.
The following day, Netcapital stock declined 13.1% further to close at $0.5015 per share.
This illustrious firm, founded in 1888, is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore over 125 years of legal expertise in securities litigation and has a proven record of protecting the rights of investors.
We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.
There is no cost or obligation to speak with an attorney.
Contact:
- Phone: (800) 575-0735 or (212) 545-4774
- Email: classmember@whafh.com
- Contact Person: Gregory Stone, Director of Case and Financial Analysis
Firm Website: Wolf Haldenstein Adler Freeman & Herz LLP
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