Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against FS KKR Capital Corp. (NYSE:FSK) and certain of the company’s senior executives for securities fraud after significant stock drops resulting from the potential violations of the federal securities laws.
If you invested in FS KKR Capital, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/fs-kkr-capital-class-action-lawsuit.
Key Details of the FS KKR Capital ($FSK) Class Action Lawsuit:
- Lead Plaintiff Deadline: July 6, 2026
- Alleged Misconduct: Misrepresentations about FS KKR Capital’s valuation of its portfolio investments and the effectiveness of its portfolio valuation process
- Largest Alleged Stock Decline: February 26, 2026 – 15.24% Stock Drop
- Court: U.S. District Court for the Eastern District of Pennsylvania
- Action: Contact BFA Law to discuss your rights
Investors have until July 6, 2026 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in FS KKR Capital securities. The case is pending in the U.S. District Court for the Eastern District of Pennsylvania and is captioned Stuart v. FS KKR Capital Corp., et al., No. 26-cv-2969.
Why is FS KKR Capital Being Sued for Securities Fraud?
FS KKR Capital is a private credit firm that specializes in making private loans (also called “debt investments”) to companies. FS KKR Capital’s principal source of revenue is interest income earned on its debt investments, as well as other fees and dividends from the companies in which it invests.
During the relevant period, FS KKR Capital claimed it was establishing an improved portfolio credit profile, and that any non-accrual issues with legacy investments were being adequately addressed through restructuring.
As alleged, in truth, FS KKR Capital misrepresented the valuation of its portfolio investments and the effectiveness of its portfolio valuation process.
Why did FS KKR Capital’s Stock Drop?
On August 6, 2025, FS KKR Capital reported Q2 2025 earnings, revealing that its net asset value had declined to $21.93 per share, down $1.44 per share, or 6.2%, from the prior quarter, and the total fair value of investments fell $474 million. The company also reported earnings (loss) per share of negative $0.75, down $1.18 per share, or 274%, from the prior quarter.
This news caused the price of FS KKR Capital stock to decline $1.66 per share, or 8.2%, from $20.24 on August 6, 2025, to $18.58 per share on August 7, 2025.
Then, on February 25, 2026, FS KKR Capital reported Q4 and full year 2025 earnings, revealing net asset value had continued to decline to $20.89 per share, down $1.10 per share, or 5%, from the prior quarter, and the total fair value of investments fell another $406 million. The company reported earnings (loss) per share of negative $0.41, down $1.17 per share, or 154%, from the prior quarter. FS KKR Capital also “acknowledge[d] specific challenges” with additional companies in its portfolio and cut its dividend to $0.48 per share (previously $0.70).
This news caused the price of FS KKR Capital stock to decline $2.03 per share, or 15.24%, from $13.32 per share on February 25, 2026, to $11.29 per share on February 26, 2026.
Click here for more information: https://www.bfalaw.com/cases/fs-kkr-capital-class-action-lawsuit.
What Can You Do?
If you invested in FS KKR Capital, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases/fs-kkr-capital-class-action-lawsuit
Or contact:
Adam McCall
adam@bfalaw.com
212.789.3619
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases/fs-kkr-capital-class-action-lawsuit
Attorney advertising. Past results do not guarantee future outcomes.
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