TriplePoint (TPVG) Stock Drops On Report Alleging Weak Loan Book

Silver Law Group, a nationally-recognized law firm representing victims of securities and investment fraud, is investigating potential claims to recover investment losses on behalf of owners of TriplePoint (TPVG) stock, which has recently dropped significantly in value on a report questioning the value of its loan book.

If you own shares of TriplePoint (TPVG), Silver Law Group may be able to help you recover investment losses. Contact us today for a consultation at 800-975-4345.

Report Alleges TriplePoint’s Equity Is Impaired

TriplePoint Venture Growth BDC (TPVG) describes itself as a “business development company specializing in investments in venture capital-backed companies at the growth stage investments.” The company also provides “debt financing to venture growth space companies.”

TriplePoint has stated that its objective is to maximize return to shareholders through income, and capital appreciation by lending to venture growth state companies.

On May 2, 2023, The Bear Cave by Edwin Dorsey, a website and newsletter that give analysis and commentary on the short world and activist short campaigns, released a report alleging that “TriplePoint is encumbered by high fees, weak management, and a weaker loan book saddled by portfolio company bankruptcies and upside-down startups. The Bear Cave believes TriplePoint’s equity may be severely impaired, if it has any value at all.”

That day, TriplePoint’s stock price dropped by about 8%.

The Bear Cave stated that they believe TriplePoint’s net asset value will continue to decline, and the company may need to substantially write down the value of their loan book.

As an example, The Bear Cave report noted that last quarter TriplePoint took a $34 million write-down for online pharmacy Medley Health, which had declared bankruptcy following the discovery of improper activities and accounting irregularities by former employees.

In April, 2023 The Pill Club, which is a telehealth provider and TriplePoint borrower, declared bankruptcy after an $18 million settlement with the California Attorney General for alleged insurance fraud. The Bear Cave claims to have identified more companies with TriplePoint loans worth $170 million that are in “substantial distress”.

In August, 2022, TriplePoint held a public offering of common stock that grossed $51.5 million at $13.75 per share. Joint book-running managers for the offering included Keefe, Bruyette & Woods, Wells Fargo Securities, Morgan Stanley, UBS Investment Bank, and Goldman Sachs, with Deutsche Bank Securities as lead manager, and Compass Point, Ladenburg Thalmann, KeyBanc Capital Markets, Oppenheimer, and Piper Sandler also as co-managers for the offering.

Do You Own Shares Of TriplePoint (TPVG)?

The attorneys at Silver Law Group represent investors nationwide and internationally in class action lawsuits against issuers in state and federal court, and in arbitration claims in cases of stockbroker misconduct.

Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at no-cost at ssilver@silverlaw.com or call (800) 975-4345.