NEW YORK, Jan. 03, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Capitala Finance Corp. (“Capitala Finance” or the “Company”) (Nasdaq:CPTA) in the United States District Court for the Central District of California on behalf of a class consisting of investors who purchased or otherwise acquired Capitala Finance securities on the open market from January 4, 2016 through and including August 7, 2017 (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

The Complaint alleges that Capitala Investment Advisors, LLC manages Capitala Finance in exchange for an annual base management fee and an incentive fee.  On January 4, 2016, Capitala Finance announced that Capitala Investment Advisors agreed to voluntarily waive its quarterly incentive fee. Throughout the Class Period, Capitala Finance emphasized in its SEC filings that the Company’s success “depends on the ability of Capitala Investment Advisors to attract and retain qualified personnel in a competitive environment.”  On August 7, 2017, Capitala Finance revealed that six of its investments were on non-accrual status — twice as many as it had the previous quarter.  The next day, Capitala Finance revealed that Capitala Investment Advisors had been losing professional talent in underwriting and portfolio management due to the waiving of its incentive fee.  Capitala Finance further acknowledged that the rising number of nonaccrual investments was connected to the loss in talent, causing the company’s stock to fall nearly 30% over the next three trading days to close at $8.99 per share on August 10, 2017.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the February 26, 2018 lead plaintiff motion deadline.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at or

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