FS KKR faces class action lawsuit over alleged false financial statements and declining asset values.

FS KKR Capital Corp is the subject of a class action lawsuit accusing the company and its executives of misleading investors by overstating portfolio restructuring effectiveness, investment valuations, and distribution durability. The lawsuit highlights significant declines in FS KKR's net asset value and investment fair value reported in 2025, alongside rising non-accrual investments and dividend cuts. These disclosures led to sharp drops in the company's stock price. Investors who suffered losses can seek to become lead plaintiffs in the case, with motions due by July 6, 2026.