Netcapital Inc. faces class action lawsuit over alleged revenue inflation
Robbins LLP has filed a class action lawsuit against fintech company Netcapital Inc., alleging the firm used sham consulting agreements to inflate its reported revenue.
A securities class action lawsuit has been filed against Netcapital Inc. on behalf of investors who purchased shares between December 15, 2021, and September 3, 2026. The complaint alleges that the company engaged in a scheme to misstate its financial performance by utilizing forged and backdated consulting agreements with entities tied to board member John Fanning.
The lawsuit claims these transactions were undisclosed related-party dealings and that the consulting services purportedly provided were largely non-existent. These actions allegedly resulted in the filing of false certifications regarding the company's internal controls and overall business health.
Netcapital's stock has faced significant volatility following a series of disclosures in 2026, including an SEC complaint, the resignation of its independent auditor, and the departure of a board member. Investors wishing to serve as lead plaintiff in the litigation must file their motions with the court by December 7, 2026.