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FSK Deadline Alert: Levi & Korsinsky Reminds FS KKR CAPITAL CORP. (FSK) Investors of Securities Class Action Deadline on July 6, 2026
FSK Deadline Alert: Levi & Korsinsky Reminds FS KKR CAPITAL CORP. (FSK) Investors of Securities Class Action Deadline on July 6,
About this update from Fs Kkr Capital Corp.
[{"type":"text","content":"Alert: Claims Focus on Alleged Misrepresentations About Non-Accrual Portfolio Management That Cost FSK Investors $880 Million in Fair Value Losses Across Two Corrective DisclosuresNEW YORK, May 20, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of FS KKR Capital Corp. (NYSE: FSK) securities of a pending securities class action.THE CASE: A class action seeks to recover damages for investors who purchased FSK securities between May 8, 2024 and February 25, 2026.YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you can recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.FSK shares fell $2.03 per share, or 15.24%, closing at $11.29 on February 26, 2026, after the Company revealed its non-accrual rate had climbed above the long-term BDC industry average. Investors have until July 6, 2026 to seek lead plaintiff status.The Alleged Non-Accrual Acceleration From 1.7% to 3.4% at Fair ValueA business development company cannot sustain its distribution strategy or maintain its debt-to-equity compliance when a growing share of its loan portfolio stops generating income. For FS KKR Capital, the complaint chronicles a dramatic reversal in the credit health of its investment book.As alleged in the filing, the Company told investors quarter after quarter that its workout team was making \"significant progress restructuring certain non-accruing investments.\" Non-accruals at fair value had reportedly declined from 5.5% in December 2023 to just 1.7% by September 2024. The lawsuit contends this progress narrative masked deepening problems in legacy holdings that management knew or should have known were deteriorating.By June 2025, non-accruals at fair value had nearly doubled to 3.0%. By December 2025, they reached 3.4% at fair value and 5.5% at amortized cost, a level the Company's own Chief Investment Officer was forced to acknowledge exceeded the long-term BDC industry average of approximately 3.8% at cost.Legacy Portfolio Management and the Workout Team's Alleged FailuresThe action claims FS KKR's reported success in restructuring troubled credits was overstated. Specifically, the complaint identifies multiple portfolio companies — including Production Resource Group, 48forty, Kellermeyer Bergensons Services, Worldwise, Medalli...