PHILADELPHIA, May 6, 2026 /PRNewswire/ -- National plaintiffs' law firm Berger Montague PC announces a class action lawsuit against FS KKR Capital Corp. (NYSE: FSK) ("FS KKR" or the "Company") on behalf of investors who purchased or acquired FS KKR securities during the period from May 8, 2024 through February 25, 2026 (the "Class Period").

Investor Deadline: Investors who purchased or acquired FS KKR securities during the Class Period may, no later than July 6, 2026, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.

Headquartered in Phila., PA, FS KKR is a private credit firm specializing in debt investments. The Company makes loans to other businesses, and its primary revenue source is interest income on debt investments, as well as other fees and dividends.

The suit alleges that, throughout the Class Period, Defendants failed to disclose to investors that the Company: (1) overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies; (2) overstated the valuation of its portfolio investments and/or the effectiveness of the Company's portfolio valuation process; and (3) overstated the durability of its quarterly distribution strategy.

According to the complaint, investors first began to learn the true state of FS KKR on August 6, 2025, when the Company reported second quarter 2025 earnings. On that date, Defendants announced that the Company's net asset value had declined to $21.93 per share, down $1.44 (6%) from the prior quarter, and the total fair value of investments declined $474 million, to $13.6 billion. 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.

On this news, share prices fell $1.66 per share, or 8%, to close at $18.58 per share on August 7, 2025.

Then, on February 25, 2026, 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 the prior quarter, and the total fair value of investments fell another $406 million, to $13.0 billion. 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 (down from $0.70).

On this news, the Company's stock price fell $2.03 per share, or 15%, to close at $11.29 per share on February 26, 2026.

If you are an FS KKR investor and would like to learn more about this action, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bergermontague.com or (215) 875-3015, or Caitlin Adorni at cadorni@bergermontague.com or (267) 764-4865.

About Berger Montague

Berger Montague is one of the nation's preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.

For more information or to discuss your rights, please contact:

Andrew Abramowitz

Berger Montague

(215) 875-3015

aabramowitz@bergermontague.com

Caitlin Adorni

Berger Montague

(267) 764-4865

cadorni@bergermontague.com

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