Lawsuit Alert: Investors who lost money with shares of FS KKR Capital Corp. (NYSE: FSK) should contact the Shareholders Foundation

An investor, who purchased shares of FS KKR Capital Corp. (NYSE: FSK), filed a lawsuit over alleged violations of Federal Securities Laws by FS KKR Capital Corp. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of FS KKR Capital Corp. (NYSE: FSK) have certain options and for certain investors are short and strict deadlines running. Deadline: July 6, 2026. NYSE: FSK investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Philadelphia, PA based FS KKR Capital Corp. is a business development company specializing in investments in debt securities. FS KKR Capital Corp. (NYSE: FSK) reported that its annual Total Revenue declined from $664 million in 2024 to $113 million in 2025, and that its Net Income decreased from $585 million in 2024 to $11 million in 2025.

On August 6, 2025, after the market closed, the Company reported second quarter 2025 earnings, revealing that the Company'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, the Company reported earnings (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 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.
However, the Company maintained that its "operating results and corresponding net asset value" were merely "impacted by company specific issues affecting four portfolio companies, each of which have been discussed on prior earnings calls."

Then, on February 25, 2026, after the market closed, the Company announced fourth quarter and full year 2025 earnings, revealing net asset value had continued to decline to $20.89, down $1.10 or 5% from prior quarter, and the total fair value of investments fell another $406 million, to $13,009 million. Moreover, the Company reported earnings (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. The Company also "acknowledge[d] specific challenges" with additional companies and cut its dividend to $0.48 per share (previously $0.70).

In the accompanying earnings call, the Company's Chief Investment Officer was forced to acknowledge that its "recent underperformance reflects challenges in certain legacy investments" in addition to those previously discussed. Further, challenges ran much deeper, as the Company revealed issues with the identified companies only accounted for "50% of net realized and unrealized losses."

Shares of FS KKR Capital Corp. (NYSE: FSK) declined from $24.10 per share on February 19, 2025, to as low as $9.84 per share on March 30, 2026.

According to the complaint the plaintiff alleges on behalf of purchasers of FS KKR Capital Corp. (NYSE: FSK) common shares between May 8, 2024 and February 25, 2026, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 8, 2024 and February 25, 2026, the Defendants failed to disclose to investors that the Company overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies, that the Company overstated the valuation of its portfolio investments and/or overstated the effectiveness of the Company's portfolio valuation process, that the Company overstated the durability of its quarterly distribution strategy, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of FS KKR Capital Corp. (NYSE: FSK) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.