The legal action centers on allegations that Netcapital engaged in sham consulting deals with entities linked to John Fanning. According to the complaint, these agreements were frequently forged or backdated, with the company providing little actual service in exchange for revenue. The suit claims these undisclosed related-party transactions rendered Netcapital’s financial certifications under the Sarbanes-Oxley Act fundamentally false.
Investors Targeted in Netcapital Securities Fraud Lawsuit
Investors who purchased Netcapital Inc. securities between December 15, 2021, and September 3, 2026, face a critical deadline to seek compensation. The Rosen Law Firm has filed a class action lawsuit alleging the company misled shareholders through backdated consulting agreements and improper revenue recognition.
Shareholders who suffered losses during the specified period have until December 7, 2026, to file a motion with the court to serve as lead plaintiff. While investors may choose their own counsel, the firm emphasizes that no class has been formally certified yet. Those wishing to participate in the litigation can contact Phillip Kim at The Rosen Law Firm for further details on the recovery process.
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