TCPC: Amended Complaint Alleges Valuation Failures

August 31, 2026

BlackRock TCP Capital Corp. disclosed on August 28, 2026, that investors filed a first amended securities class-action complaint against TCPC and certain current and former executives on August 24.

The complaint covers purchasers of TCPC common stock from November 6, 2024, through January 23, 2026. It alleges that the defendants made materially false or misleading statements about loan valuations and net asset value. The plaintiffs claim several distressed investments were not marked appropriately and seek damages and other relief under federal securities law.

These are allegations, not findings. The filing establishes neither liability nor a recoverable amount, and it discloses no court ruling on the merits. The complaint also cites outside reporting about a Department of Justice inquiry into TCPC’s accounting and valuation practices; the status and outcome of any inquiry are not established by the complaint.

Confirmed financial context

TCPC’s January 23 Form 8-K estimated fourth-quarter 2025 NAV at ﹩7.05 to ﹩7.09 per share, down about 19% from ﹩8.71. The company attributed the decline primarily to issuer-specific developments. It also estimated net investment income of ﹩0.24 to ﹩0.26 per share, nonaccruals of 4.0% at fair value, and net regulatory leverage of 1.45 times.

For the second quarter of 2026, TCPC later reported adjusted net investment income of ﹩0.21 per share against a declared quarterly dividend of ﹩0.17. Adjusted NII remains the primary Fly High dividend-support signal. The lawsuit and valuation questions are supporting legal, governance, and NAV-risk evidence rather than a separate coverage measure.

Why it matters

The amended complaint could raise legal costs and increase scrutiny of TCPC’s valuation controls. Shareholders should watch for a dismissal ruling, class certification, a company response, regulatory action, or any quantified exposure. Until then, the financial effect remains uncertain.

Sources

This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.