Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against FS KKR Capital Corp. (FSK)

NEW YORK, May 05, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise 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”).

The Complaint alleges that FS KKR Capital is a private credit firm, also known a Business Development Company, which specializes in making private loans to companies. The Complaint alleges that FS KKR Capital’s business operates by making loans to other businesses (also called “debt investments”), the Company’s principle source of revenue is then interest income earned on these debt investments, as well as other fees and dividends from the companies it invests in.        

The Complaint alleges that 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; (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.

According to the Complaint, 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. The Complaint alleges that moreover, the Company report 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. The Complaint alleges that 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. The Complaint alleges that 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.”

The Complaint alleges that 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.        

Investors who purchased or otherwise acquired shares of FS KKR Capital should contact the Firm prior to the July 6, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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