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Securities

Apr. 17, 2026

Opaque loans, inflated values and a lawsuit that could crack private credit

Amid mounting stress in the opaque private credit market, Burnell v. BlackRock TCP Capital Corp. spotlights investor claims that lenders inflated portfolio values--raising the specter of litigation reminiscent of the 2008 financial crisis.

Daniel Barenbaum

Partner
Berman Tabacco

Phone: (415) 433-3200

Email: dbarenbaum@bermantabacco.com

See more...

Michael Dark

Of Counsel
Berman Tabacco

Email: mdark@bermantabacco.com

See more...

Opaque loans, inflated values and a lawsuit that could crack private credit
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Many young litigators and businesspeople know the Great Financial Crisis of 2008 only as a chapter in a textbook. Driven in large part by high-risk lending in opaque and relatively unregulated corners of the financial market, a housing bubble burst when borrowers defaulted, spurring an international liquidity crisis and a wave of litigation against behemoths such as Bear Stearns and Countrywide. With warning signs of what may be a parallel financial crisis now starting to app...

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