SAN DIEGO, May 7, 2026 /PRNewswire/ — The law firm of Robbins Geller Rudman & Dowd LLP announces that the FS KKR class action lawsuit – captioned Stuart v. FS KKR Capital Corp., No. 26-cv-02969 (E.D. Pa.) – seeks to represent purchasers or acquirers of FS KKR Capital Corp. (NYSE: FSK) securities and charges FS KKR and certain of FS KKR’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the FS KKR class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-fs-kkr-capital-corp-class-action-lawsuit-fsk.html
You can also contact attorneys Ken Dolitsky or Michael Albert of Robbins Geller by calling 800/851-7783 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the FS KKR class action lawsuit must be filed with the court no later than July 6, 2026.
CASE ALLEGATIONS: FS KKR is a business development company specializing in investments in debt securities.
The FS KKR class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) FS KKR overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies; (ii) FS KKR overstated the valuation of its portfolio investments and/or overstated the effectiveness of FS KKR’s portfolio valuation process; and (iii) FS KKR overstated the durability of its quarterly distribution strategy.
The FS KKR class action lawsuit further alleges that on August 6, 2025, FS KKR reported second quarter 2025 earnings, revealing that FS KKR’s net asset value had declined to $21.93 per share, down $1.44, or 6.2% from the prior quarter, and the total fair value of investments fell $474 million, to $13,648 million. Moreover, FS KKR allegedly reported a loss per share of negative $0.75, down $1.18 or 274.4% from the prior quarter, and a total net realized and unrealized loss per share of negative $1.36, down $1.12 or 466.7% from the prior quarter. Further, investments on non-accrual status allegedly rose to 3.0% and 5.3% of the total investment portfolio at fair value and amortized cost, respectively, compared to 2.1% and 3.5% in the prior quarter. On this news, the price of FS KKR stock fell more than 8%, according to the complaint.
Then, on February 25, 2026, FS KKR announced fourth quarter and full year 2025 earnings, allegedly revealing net asset value had continued to decline to $20.89, down $1.10 or 5% from the prior quarter, and the total fair value of investments fell another $406 million, to $13,009 million. Moreover, FS KKR allegedly reported a loss per share of negative $0.41, down $1.17 or 153.9% from the prior quarter, and a total net realized and unrealized loss per share of negative $0.89, down $1.08 or 568.421% from the prior quarter. Further, investments on non-accrual status again rose to 3.4% and 5.5% of the total investment portfolio at fair value and amortized cost, respectively, compared to 2.9% and 5.0% in the prior quarter. FS KKR also allegedly “acknowledge[d] specific challenges” with additional companies and cut its dividend to $0.48 per share (previously $0.70). On the accompanying earnings call, FS KKR’s Chief Investment Officer, was allegedly forced to acknowledge that its “recent underperformance reflects challenges in certain legacy investments” in addition to those previously discussed, including Medallia and Cubic Corp. Further, challenges ran much deeper, as FS KKR revealed issues with the identified companies only accounted for “50% of net realized and unrealized losses.” On this news, the price of FS KKR stock fell more than 15%, according to the FS KKR class action lawsuit.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired FS KKR securities during the class period to seek appointment as lead plaintiff in the FS KKR class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the FS KKR class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the FS KKR class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the FS KKR class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud and shareholder rights litigation. Our Firm ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report, recovering more than $916 million for investors in 2025. This marks our fourth #1 ranking in the past five years. And in those five years alone, Robbins Geller recovered $8.4 billion for investors – $3.4 billion more than any other law firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Contact:
Robbins Geller Rudman & Dowd LLP
Ken Dolitsky
Michael Albert
655 W. Broadway, Suite 1900, San Diego, CA 92101
800/851-7783
info@rgrdlaw.com
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SOURCE Robbins Geller Rudman & Dowd LLP
