NEW YORK, May 18, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP encourages investors who suffered losses in FS KKR Capital Corp. (NYSE: FSK) to contact the firm. Those who purchased FSK securities between May 8, 2024 and February 25, 2026 may be entitled to recover damages. Find out if you are eligible to recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
FSK shares fell $2.03 per share (15.24%) on February 26, 2026, closing at $11.29 after the Company slashed its dividend from $0.70 to $0.48 per share and revealed non-accrual rates exceeding the long-term BDC industry average. Investors have until July 6, 2026 to seek lead plaintiff status.
May 8, 2024: The "Significant Progress" Claim
The Class Period opens with management declaring it had "made significant progress restructuring certain non-accruing investments." Non-accruals had declined from 8.9% to 6.5% at amortized cost. The lawsuit contends this statement set the foundation for investor expectations that credit problems were being resolved.
August 6, 2024: The "Minimum $2.90" Dividend Promise
Management stated distributions would "equate to a minimum of $2.90 per share during 2024" and touted that the "workout team's efforts further reduced our non-accrual investments." Non-accruals fell to 4.3% at cost. As alleged, these assurances reinforced the narrative that legacy credit issues were under control.
November 6, 2024: Continued Reduction Claims
The action claims that management again told investors it had "further reduced our non-accrual investments," with non-accruals declining to 3.8% at amortized cost. NAV stood at $23.82 per share.
February 26, 2025: "Portfolio Stability" Assurances
Management highlighted "disciplined capital deployment, portfolio stability, and a well-laddered, diversified capital structure." NAV stood at $23.64 per share. Non-accruals ticked up slightly to 3.7% at cost, though the filing states this uptick was not meaningfully disclosed.
May 7, 2025: Distribution "Stability" Reiterated
Just three months before the first corrective disclosure, management claimed that "spillover income during prior periods of elevated interest rates supports the continued stability" of quarterly distributions totaling $0.70 per share. The complaint chronicles this as the final reassurance before the reversal.
August 6, 2025: First Corrective Disclosure
The securities action alleges that earnings revealed NAV had declined 6.2% to $21.93, fair value fell $474 million, and non-accruals surged to 5.3% at cost. Four troubled portfolio companies were identified. Shares dropped 8.20% the following day.
February 25, 2026: Second Corrective Disclosure and Dividend Cut
NAV declined further to $20.89, fair value fell another $406 million, non-accruals rose to 5.5% at cost, and the Company cut its dividend by 31%. Management acknowledged non-accrual rates exceeded the BDC industry average. Shares fell 15.24%.
Submit your claim before the deadline or call Joseph E. Levi, Esq. at (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology in this case raises questions about whether investors received an accurate picture of FSK's credit trajectory as it evolved quarter by quarter." -- Joseph E. Levi, Esq.
ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. The window to apply for lead plaintiff closes on July 6, 2026.
Frequently Asked Questions About the FSK Lawsuit
Q: When did FS KKR Capital Corp. allegedly mislead investors? A: The class period runs from May 8, 2024 to February 25, 2026. The alleged fraud was revealed through two corrective disclosures on August 6, 2025 and February 25, 2026, each causing significant stock declines.
Q: How much did FSK stock drop? A: Shares fell approximately 15.24%, a decline of $2.03 per share, after the Company disclosed deteriorating non-accrual rates, a $406 million decline in fair value, and a 31% dividend cut on February 25, 2026. An earlier corrective event on August 6, 2025 caused an 8.20% single-day decline.
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 jlevi@levikorsinsky.com or (212) 363-7500. 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 shares. Investors who bought during the class period and sold at a loss may still participate.
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.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
