Investors who bought FS KKR Capital Corp. securities between May 8, 2024 and February 25, 2026 have until July 6, 2026 to ask a court to make them lead plaintiff in a securities fraud class action. A suit has already been filed against the company, which trades on the New York Stock Exchange as FSK.
Plaintiff-side law firms, including the Law Offices of Frank R. Cruz and Rosen Law Firm, put out notices in late June reminding shareholders of the deadline. A lead plaintiff is the representative party who directs the litigation on behalf of the rest of the class.
What the complaint alleges
The complaint says that during the class period the defendants made false or misleading statements, or failed to disclose, four things:
The company overstated how well its efforts to restructure its portfolio of nonaccrual companies were working. It overstated the valuation of its portfolio investments, or the effectiveness of the process it uses to value them. And it overstated how durable its quarterly distribution strategy was.
The fourth point follows from the first three. The suit says the defendants’ positive statements about the company’s business, operations and prospects were materially misleading or lacked a reasonable basis. When the true details reached the market, the lawsuit claims, investors suffered damages.
What shareholders need to do
Very little, at this stage. No class has been certified. Rosen Law Firm said that until one is, investors are not represented by counsel unless they hire one. A shareholder can pick a lawyer, or stay an absent class member and do nothing. The Cruz firm said the same: no action is required to be part of the class.
Rosen also said an investor’s ability to share in any future recovery does not depend on serving as lead plaintiff. The firm said it works on a contingency fee basis, so investors would owe no out-of-pocket fees or costs.
Sources
- FS KKR Capital Corp. (FSK) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit
- FS KKR Deadline: FSK Investors with Losses in Excess of $100K Have Opportunity to Lead FS KKR Capital Corp. Securities Fraud Lawsuit
