FSK Shareholder Alert: FS KKR CAPITAL CORP. Securities Class Action Lawsuit - Investors With Losses May Contact Levi & Korsinsky

Important Information Regarding Section 20(a) Individual Liability Claims: FSK's CEO and CFO Allegedly Certified Financial Statements That Overstated Portfolio Values by Hundreds of Millions While Non-Accrual Investments Deteriorated

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP alerts investors in FS KKR Capital Corp. (NYSE: FSK) that two senior executives are named as individual defendants in a securities class action covering purchases between May 8, 2024 and February 25, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [e-mail] | [phone].

FSK shares fell $2.03 per share (15.24%) on February 26, 2026, closing at $11.29 after corrective disclosures revealed ongoing portfolio deterioration and a dividend cut from $0.70 to $0.48 per share. The Court has set July 6, 2026 as the deadline to apply for lead plaintiff appointment.

The Named Individual Defendants

The securities action names Michael C. Forman, Chief Executive Officer and Chairman, and Steven Lilly, Chief Financial Officer, as individual defendants alongside FS KKR Capital Corp. Both executives served in their respective roles throughout the entire Class Period and allegedly possessed the power and authority to control the contents of the Company's SEC filings, press releases, and investor presentations.

Section 20(a) Control Person Framework

Section 20(a) of the Securities Exchange Act of 1934 imposes liability on individuals who control entities that violate Section 10(b). The complaint contends that Forman and Lilly, by virtue of their senior positions, had direct access to material non-public information about the deteriorating portfolio and the authority to prevent or correct the Company's alleged misrepresentations. As the two most senior officers, they allegedly directed the content of every quarterly earnings release and SEC filing issued during the Class Period.

Sarbanes-Oxley Certification Obligations

The lawsuit asserts that both executives personally certified the accuracy of the Company's quarterly and annual SEC filings under Sections 302 and 906 of the Sarbanes-Oxley Act. These certifications stated:

• The Company's internal control over financial reporting was "effective to provide reasonable assurance regarding the reliability of financial reporting"
• Each filing fairly presented the Company's financial condition, including net asset value per share
• The board's valuation process determined portfolio fair values "in good faith" pursuant to the Adviser's policy

Alleged Control Person Liability

The action charges that Forman and Lilly knew or should have known that the Company's public statements were materially misleading. Specifically:

• Both executives allegedly oversaw a valuation process that overstated portfolio investment fair values while non-accrual investments were accelerating
• Forman personally issued statements claiming "significant progress restructuring certain non-accruing investments"
• Lilly co-supervised the evaluation of disclosure controls that were certified as effective each quarter, even as the fair value of investments would ultimately fall by $880 million across two corrective disclosures
• Both defendants allegedly had access to information showing credit deterioration in legacy investments that was not disclosed to shareholders until after significant damage had occurred

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives certify financial disclosures under Sarbanes-Oxley, they accept personal responsibility for the accuracy of those representations to investors." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering damages or call [phone].

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

Frequently Asked Questions About the FSK Lawsuit

Q: Who are the defendants named in the FSK lawsuit? A: The complaint names FS KKR Capital Corp. and individual defendants including Michael C. Forman (CEO and Chairman) and Steven Lilly (CFO), who signed SEC filings and certified financial disclosures under Sarbanes-Oxley throughout the Class Period.

Q: What is the FSK lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is July 6, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What do FSK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [e-mail] or [phone]. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my FSK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.