The Globe and Mail reports in its Friday edition that Home Capital Group's shares plunged $4.61 to close Thursday in Toronto at $17.71, erasing about $300-million in market value, as investors weighed the potential damage from regulatory action against the alternative mortgage lender. The Globe's Niall McGee writes that the Ontario Securities Commission accused Home Capital of making "materially misleading statements" to investors and named its current chief financial officer and two former chief executive officers in a statement of allegations released Wednesday. By withholding information about fraud by mortgage brokers in its broker channel, Home Capital allegedly violated securities laws. On Thursday, investors fretted about the potential financial hit the company could take as a result of possible OSC sanctions and other negative impacts on the business, analysts said. The OSC allegations "could cause material damage to the company's reputation," said National Bank analyst Jaeme Gloyn. Among the other repercussions, Mr. Gloyn raised concerns about a possible downgrade on the company's debt, weaker funding capabilities and softer loan growth. The shares had been heavily shorted in recent months.