Deadline Soon: FS KKR Capital Corp. (FSK) Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming July 6, 2026 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired FS KKR Capital Corp. (“FS KKR Capital” or the “Company”) (NYSE: FSK) securities between May 8, 2024 and February 25, 2026, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON FS KKR CAPITAL CORP. (FSK), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

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.”

On this news, share prices fell $1.66 or 8.20% to close at $18.58 per share on August 7, 2025, on unusually heavy trading volume.

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.”

On this news, the Company’s stock price fell $2.03 or 15.24%, to close at $11.29 per share on February 26, 2026, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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; (3) the Company overstated the durability of its quarterly distribution strategy; and (4) 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.

If you purchased or otherwise acquired FS KKR Capital securities between May 8, 2024 and February 25, 2026, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is July 6, 2026.

Contact Us To Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:

Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: [e-mail]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.