BlackRock TCP ($TCPC) Misleading Valuations and Asset Performance Case

C.D. California

Court

2:26-cv-01102

Case number

11/06/2024

Class period Start

01/23/2026

Class period End

04/06/2026

Lead Plaintiff motion deadline

$TCPC investors filed a claim against BlackRock TCP Capital Corp. for allegedly misrepresenting the valuation of its investments, understating unrealized losses, and overstating its net asset value (NAV), even as the portfolio deteriorated.
After revealing increased non-accruals, higher losses, and a NAV cut, $TCPC fell over 34% from $8.44 on February 27, 2025, to $5.10 on January 26, 2026.
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Case Details:

Between May 8, 2023, and January 25, 2026, BlackRock TCP made repeated claims that it was managing portfolio risk effectively and that its investments were appropriately valued. The company emphasized stability in its net asset value (NAV) and assured investors that its portfolio was performing well.

On February 27, 2025, BlackRock TCP reported results for FY2024, revealing a significant increase in distressed investments. Specifically, non-accrual loans more than doubled, and the cost of non-accrual debt rose 289%, from 3.7% to 14.4% of the portfolio. The company also disclosed total realized and unrealized losses of $194.9 million for the year, up 186% year-over-year, including a $72.3 million net unrealized loss in Q4. Despite these figures, BlackRock TCP maintained its NAV at $9.23 per share, claiming “the vast majority” of the portfolio continued to perform well.

Following this announcement, the stock fell $0.90, or 9.64%, closing at $8.44 on February 27, 2025.

Then, on January 23, 2026, BlackRock TCP disclosed that its NAV per share had dropped to between $7.05 and $7.09 as of year-end 2025 — a 19% decline from the previous quarter and a 23.4% drop year-over-year. On the next trading day, January 26, shares declined $0.76, or 12.97%, closing at $5.10, reflecting deepening investor concern.

Based on these events, $TCPC investors filed a claim against BlackRock TCP Capital, alleging the company:
It misstated the value of investments and failed to timely recognize unrealized losses.
It overstated NAV despite a deteriorating portfolio and increasing non-accrual loans.
It misled investors by maintaining that the majority of its assets continued to perform well.
Investors argue BlackRock TCP concealed the extent of portfolio risk and overvaluation, leading to significant losses when accurate figures were revealed.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointment

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

01/26/2026

Filing date

02/03/2026

Lead Plaintiff Deadline

04/06/2026

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