The complaint alleges that Netcapital violated the Securities Exchange Act of 1934 by disseminating false and misleading information to shareholders. Investigators suggest that the company utilized sham consulting contracts specifically designed to inflate revenue figures, effectively masking the true financial health of the business during the specified class period.

Shareholders who incurred financial losses have until December 7, 2026, to seek lead plaintiff status. While the DJS Law Group is spearheading the litigation, investors are not required to hold a lead position to qualify for potential recovery. The firm, headed by David J. Schwartz, specializes in corporate governance and securities litigation, representing a range of institutional investors and asset managers.