FS KKR Capital Corp II (NYSE: FSKR) has recently been listed on the New York Stock Exchange and has declined substantially since it is was listed. Our investment fraud lawyers are representing clients that experienced losses. Non-traded Business Development Companies (“BDCs”) FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and Corporate Capital Trust II (CCT II) were consolidated into the Franklin Square KKR Capital II Fund in late 2019 and listed on the NYSE FSKR) on June 17, 2020. The consolidation and the NYSE listing was viewed by many as a positive step for investors, but investor value has since plummeted, leaving many perplexed and saddled with significant losses. Shortly before FSKR became public, it approved a 4:1 reverse stock split and continued to decrease in value after shares began trading on the open market. Investors are frustrated and often times left to fend for themselves in trying to decipher what happened to their FSKR stock (and other similar investments).
Investors seeking to recover losses are encouraged to call 1 888-628-5590 to get a free portfolio review by one of our investment fraud lawyers. Due to the statute of limitations, laws, and regulations, there is a limited time for investors to make claims. We will review your information and give you options for recovering your losses.
Sales Issues with Non-Traded BDCs Similar to FS KKR Capital Corp II
FS KKR Capital Corp II now FSKR Stock and similar investments are usually offered by financial advisers working in independent broker-dealer firms. They represent one type of Direct Participation Programs (DPPs).
These Direct Participation Products share similar characteristics: pay high commissions, illiquid, touted as save income-producing investments and often dominate the investor’s portfolio either by issuer or asset class (i.e. “overcentration”). Unfortunately, investors are learning that they are stuck (due to illiquidity) in these investments, have a portfolio dominated by high-commission products that have suffered losses, and that the valuations reported on client statements are misleadingly inaccurate. Moreover, many harmed investors are retired and the lost money cannot be replaced. They are desperate and looking for help.
Non-traded REITs and non-traded BDCs that the United States Securities and Exchange Commission (SEC) define as “Reg D” offerings, also known as “private placement,” are generally risky illiquid alternative investments. The reference to Regulation D provides exemptions from the normal registration requirements of Section 5 of the Securities Act 1933.
Investors Seeking to Recover FS KKR Capital Corp II (FSKR Stock) Losses
For some investors, FINRA’s private arbitration dispute enables them to make a claim and compensate for their investments in FSKR Stock and FS KKR CAPITAL CORP. II loss. These customer disputes usually involve paper discovery and no deposition. They are a faster and more effective alternative to traditional court litigation, as they provide a private forum for quicker and more effective dispute resolution.
Many disputes from customers (private arbitration) have been filed with the Financial Industry Regulatory Association (FINRA) for customers who have suffered investment losses related to issues such as those mentioned above. There are usually no deposits involved, and these cases are generally handled incidentally with no recovery, no fee. Call 1 888-628-5590 for a free consultation.
Haselkorn and Thibaut, P.A. It is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as Phoenix, Arizona, and Cary, North Carolina. Both founding partners have nearly 45 years of legal experience.