A securities class action has been filed against FS KKR Capital (FSK) on behalf of all investors who purchased or otherwise acquired FS KKR securities between May 8, 2024 through February 25, 2026. This case has been filed in the USDC – EDPA.
According to the complaint, during the class period, FS KKR claimed it was establishing an improved portfolio credit profile, and that any non-accrual issues with legacy investments were being adequately addressed through restructuring. The complaint alleges that in reality, defendants failed to disclose to investors that: (1) the Company overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies; (2) the Company overstated the valuation of its portfolio investments and/or overstated the effectiveness of the Company’s portfolio valuation process; and (3) the Company overstated the durability of its quarterly distribution strategy. When the truth was revealed, the Company’s stock price fell, harming investors.