Netcapital (NCPL) Stock Climbs Nearly 19% After Hours: What’s Behind the Move?
Netcapital Inc. (NASDAQ:NCPL) shares surged 18.85% to $1.89 in after-hours trading on Wednesday.
The gain in the extended session followed a 14.39% climb in regular trading, where the stock closed at $1.59, according to Benzinga Pro data.
Netcapital Class Action Lawsuit Filed Against Company
The move came as a securities class action was filed against Netcapital by New York City-based law firm Wolf Haldenstein Adler Freeman & Herz LLP. The suit was announced Wednesday and covers investors who bought shares between Dec. 15, 2021, and Sept. 3, 2026. The lead-plaintiff deadline is Dec. 7, 2026.
Separately, the Law Offices of Frank R. Cruz announced an investigation on behalf of investors into possible securities law violations. The firm did not say it has filed a lawsuit.
SEC Complaint Alleges Revenue Overstatement
The Securities and Exchange Commission filed a complaint Aug. 10 against Netcapital and certain senior executives. It alleges a scheme to overstate revenue through sham, backdated and, in some cases, forged consulting agreements.
The SEC alleges Netcapital improperly recorded nearly $14 million in revenue from October 2021 through January 2024.
On Aug. 17, Netcapital disclosed in a filing that its auditor, Fruci & Associates II, PLLC, had resigned. Shares fell 28.6% to $0.228 the next day.
Director Avi Liss also resigned from the board and its Audit Committee, citing "serious allegations" in the SEC complaint, according to a Sept. 3 filing.
Trading Metrics, Technical Analysis
Netcapital has a market capitalization of $12.48 million, a 52-week high of $2.66 and a 52-week low of $0.21.
The Relative Strength Index (RSI) of NCPL stands at 60.23.
The small-cap stock of the Massachusetts-based financial technology company has declined 30.87% over the past 12 months.
Benzinga’s Edge Stock Rankings indicate Netcapital stock has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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