What's Happening?
Faruqi & Faruqi, LLP, a national securities law firm, is investigating claims against Blue Owl Capital Inc. and has reminded investors of the February 2, 2026 deadline to seek the role of lead plaintiff
in a federal securities class action lawsuit. The lawsuit alleges that Blue Owl Capital and its executives made false or misleading statements and failed to disclose significant pressures on its asset base due to BDC redemptions, leading to liquidity issues. These issues have resulted in the company limiting or halting redemptions of certain BDCs. The Financial Times reported that Blue Owl blocked redemptions in one of its private credit funds as it merges with a larger vehicle, potentially causing large losses for investors. Following this news, Blue Owl's stock price fell by 5.8% on November 17, 2025.
Why It's Important?
This class action lawsuit is significant as it highlights potential mismanagement and lack of transparency within Blue Owl Capital, which could have broader implications for investor trust and the company's financial stability. The allegations of misleading statements and undisclosed liquidity issues could lead to substantial financial losses for investors, affecting their confidence in the company's management. The outcome of this lawsuit could set a precedent for how similar cases are handled in the future, impacting the regulatory environment for financial disclosures and investor protections. Investors in Blue Owl Capital stand to gain or lose significantly depending on the lawsuit's outcome and any potential settlements or judgments.
What's Next?
Investors have until February 2, 2026, to seek the role of lead plaintiff in the class action lawsuit. The court will appoint a lead plaintiff who has the largest financial interest and is typical of class members to oversee the litigation. The merger of Blue Owl Capital Corporation II with a larger vehicle is expected to close in early 2026, after which investors will lose the ability to redeem cash at the fund's Net Asset Value. Instead, they will receive shares in the publicly traded Blue Owl Capital Corporation, which are currently trading below the fund's NAV. The lawsuit's progress and any potential settlements will be closely monitored by investors and legal experts.
