FS KKR Capital Corp. (NYSE: FSK)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into FS KKR Capital Corp. (“FSK” or “the Company”) (NYSE: FSK).

In August 2025 and again in February 2026, the Company reported results that gradually revealed how much trouble its investment portfolio was really in. On August 6, 2025, the Company announced second quarter results showing that the value of its holdings had dropped sharply, that it had swung to a loss for the quarter, and that a growing share of its investments had stopped making payments, problems the Company described as limited to four portfolio companies previously addressed.

Then, on February 25, 2026, the Company reported fourth quarter and full year 2025 results showing the same declines had continued: the portfolio lost value again, the Company posted another quarterly loss, non-paying investments increased further, and the Company cut its dividend by nearly a third. It also conceded that problems extended to still more portfolio companies than previously identified. On the accompanying earnings call, Chief Investment Officer Pietrzak admitted that even the troubled investments the Company had identified accounted for only about half of its losses, and that its rate of non-paying investments was running above the industry average.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.

KSF’s investigation is focusing on whether FSK’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

If you have information that would assist KSF in its investigation, or have been a long-term holder of FSK shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at (833) 938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.