A securities class action has been filed on behalf of investors who purchased FS KKR Capital Corp. (NYSE: FSK) stock and other securities between January 1, 2022, and present day. KKR Capital Corp. is a business development company that provides financing to middle-market companies, primarily through private credit investments. The company generates income from a portfolio of loans that it represents as being conservatively underwritten and of high credit quality, while also maintaining that it has sufficient liquidity to support stable shareholder distributions.

The lawsuit alleges that FS KKR and its executives misled investors overstating the strength of its underwriting practices and the overall quality of its private credit portfolio. Specifically, the company is alleged to have concealed deterioration in loan performance and credit risk within its portfolio, while continuing to assure investors that its investments were sound. In addition, the company is alleged to have misrepresented its liquidity position and ability to sustain dividends. The truth began to emerge when the company implemented gating measures and/or otherwise restricted investor liquidity, raising concerns about the true condition of its portfolio and cash flows. As the market absorbed these developments, FS KKR’s stock price declined, resulting in significant losses to investors.

Labaton Keller Sucharow is advising clients who lost money on FS KKR stock. If you purchased FS KKR stock between  January 1, 2022, and present day, and experienced losses, you may be eligible to participate in the ongoing action.