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Robbins LLP Invites Shareholders to Action on Netcapital

Robbins LLP, a reputable law firm specializing in shareholder rights, has reached out to individuals and entities who acquired securities from Netcapital Inc. (NASDAQ: NCPL) between December 15, 2021, and September 3, 2026. This outreach follows the filing of a class action that aims to hold the company accountable for alleged fraudulent activities concerning its revenue reporting.

What Are the Allegations?

The heart of the class action lies in accusations against Netcapital for overstating its revenues through a series of fraudulent schemes. According to the filed complaint, Netcapital is charged with entering into fraudulent consulting agreements that were backdated and, in some cases, forged. These agreements were purportedly designed to inflate the company's revenue figures unfairly.

The specifics of the allegations include failure to disclose that:
1. Sham Revenue Recognition: Netcapital allegedly recognized significant revenues from fake consulting contracts controlled by John Fanning, one of the company’s defendants.
2. Backdated Agreements: Many of these agreements were backdated or fabricated, with little to no actual consulting services provided by Netcapital Advisors.
3. Undisclosed Relationships: It is claimed that transactions involving portfolio companies tied to Fanning were improperly classified as unrelated-party transactions.
4. False Certifications: Netcapital’s compliance certifications under the Sarbanes-Oxley Act were reportedly fraudulent.
5. Misleading Statements: The allegations assert that all statements made by the defendants regarding the health and forecasts of Netcapital’s business were materially misleading or lacked a reasonable basis.

The Impact on Stock

The fallout from these accusations has dramatically affected Netcapital's stock performance. Notably, following the announcement of an SEC complaint against the company and its executives on August 10, 2026, the stock plummeted by approximately 12.8%, closing at $0.3501 the next day. Subsequent disclosures regarding the resignation of key personnel and the company's accounting firm only exacerbated this decline, with the stock's value experiencing further significant drops.

On August 18, 2026, it fell an additional 28.6% to $0.2280 after news broke about the resignation of Fruci Associates II, PLLC, the independent accounting firm. Additional negative news about board member resignations led to further declines in stock value. This series of events has raised considerable concern amongst shareholders, prompting the current class action.

What Can Affected Shareholders Do?

If you purchased or acquired Netcapital Inc. securities during the specified class period and faced losses, you might be eligible to participate as a lead plaintiff. This role involves representing the interests of all class members during the litigation. Interested investors should take note of the urgent deadline to file by December 7, 2026.

Robbins LLP assures potential clients that they do not need to assume the role of lead plaintiff to participate in any settlements. Those opting out of the lead position can still equity through a class member status. Furthermore, there are no costs involved for investors wanting to join this class action; Robbins LLP operates on a contingency fee basis, meaning no upfront fees are required.

Contacting Robbins LLP

For those looking to gain more information about the Netcapital Inc. securities class action or to submit inquiries, Robbins LLP encourages individuals to connect via email with attorney Aaron Dumas, Jr. or reach out by phone at (800) 350-6003.

Why Choose Robbins LLP?

Robbins LLP is recognized as a leading firm in shareholder rights litigation, with a proven track record of recovering more than $2 billion for investors through securities fraud cases and shareholder derivative litigations. The firm emphasizes the responsibility of companies to provide truthful and accurate information to maintain fair market operations. Brian J. Robbins, the founding partner, encapsulates the firm's mission, stating, "Companies have an obligation to provide investors with complete and accurate information so that markets can function fairly and efficiently."

For updates on the class action settlement against Netcapital Inc. or to receive timely alerts when corporate misconduct occurs, interested parties are urged to sign up for the free Stock Watch service available through Robbins LLP.