FSK DEADLINE: Levi & Korsinsky Reminds FS KKR CAPITAL CORP. Investors of Upcoming Securities Class Action Deadline

Time-Sensitive: Allegations Focus on Misleading Distribution Sustainability Representations That Cost FSK Shareholders $2.03 Per Share

NEW YORK, May 13, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in FS KKR Capital Corp. (NYSE: FSK) of a pending securities class action. Class Period: May 8, 2024 through February 25, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.

FSK shares fell $2.03 per share (15.24%) on February 26, 2026, after the Company slashed its quarterly dividend from $0.70 to $0.48 per share, a 31% reduction investors were told would not happen. The Court has set July 6, 2026 as the deadline to apply for lead plaintiff appointment.

The Alleged Distribution Strategy Deception

For nearly two years, management assured shareholders that FS KKR Capital's dividend program was built on a durable foundation. As early as the second quarter of 2024, the Company projected a minimum of $2.90 per share in annual distributions. As recently as May 2025, the lawsuit asserts, management publicly stated that "spillover income during prior periods of elevated interest rates supports the continued stability" of its $0.64 base and $0.06 supplemental quarterly distributions.

The action claims these representations lacked a reasonable basis because the Company's underlying portfolio was experiencing accelerating credit deterioration that directly threatened the income stream funding those distributions.

Private Credit Distribution Dynamics in the BDC Sector

Business Development Companies generate distribution income primarily from interest payments on private loans. When borrowers stop paying, those loans are placed on "non-accrual status" and the income stream evaporates. The sustainability of any BDC dividend depends entirely on the credit health of its loan book.

• The Company repeatedly touted "significant progress restructuring" troubled loans while non-accrual rates were allegedly poised to spike
• Management projected minimum annual distributions of $2.90 per share during a period when portfolio fair values were declining quarter after quarter
• The eventual 31% dividend cut from $0.70 to $0.48 per share contradicted repeated assurances of distribution "stability" and "confidence"
• NAV declined from $24.32 to $20.89 per share across the Class Period, eroding the asset base behind every distribution promise
• Total fair value of investments fell by approximately $880 million across two corrective disclosure quarters

Why Distribution Adequacy Allegedly Matters to Investors

BDC investors frequently purchase shares specifically for income. When a company repeatedly assures the market its distribution is sustainable, shareholders rely on those statements in making investment decisions. The complaint contends that management's distribution assurances were materially misleading because the Company knew or should have known that worsening credit conditions in its portfolio placed the dividend at serious risk.

The gap between what investors were told and what was actually occurring allegedly inflated FSK's share price throughout the Class Period, and the 31% dividend cut on February 25, 2026 finally revealed the true state of the Company's earnings capacity.

Speak with an attorney about recovering damages or call (212) 363-7500.

"Investors deserve transparency about material risks that could affect their investments. When a company repeatedly promises distribution stability while its underlying portfolio is deteriorating, shareholders are deprived of information critical to their investment decisions," stated Joseph E. Levi, Esq.

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

Frequently Asked Questions About the FSK Lawsuit

Q: Who is eligible to join the FSK investor lawsuit? A: Investors who purchased FSK stock or securities between May 8, 2024 and February 25, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: How much did FSK stock drop? A: Shares fell approximately 15.24%, a decline of $2.03 per share, after the Company disclosed a 31% dividend cut and continued portfolio deterioration when the truth was fully revealed on February 26, 2026. Investors who purchased shares during the Class Period at artificially inflated prices may be entitled to compensation.

Q: What specific misstatements does the FSK lawsuit allege? A: The complaint alleges FS KKR Capital made materially false or misleading statements regarding the sustainability of its distribution strategy, the effectiveness of portfolio restructuring, and portfolio valuations. When the true condition was revealed, the stock price declined sharply.

Q: What do FSK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my FSK shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212) 363-7500

Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP