1. Faruqi & Faruqi is investigating claims against Blue Owl Capital. 2. Investigators allege Blue Owl made misleading statements about liquidity issues. 3. Redemptions halted in a private credit fund may lead to investor losses. 4. Stock price dropped 5.8% following news of blocked redemptions. 5. Investors have until February 2, 2026, to join a class action lawsuit.
FAQ
Why Very Bearish?
The investigation and class action highlight significant liquidity concerns and potential losses, impacting investor confidence severely. Historical examples show that similar legal escalations have often led to further price declines in the associated companies.
How important is it?
Legal issues and allegations of misleading statements have historically affected stock values significantly. This situation directly threatens investor trust and OWL’s market position.
Why Short Term?
Immediate investor reaction is likely, following the recent stock price drop. Short-term pressure from legal issues can lead to increased volatility and further sell-offs.
Investors Alert: Faruqi & Faruqi Investigates Blue Owl Capital (NYSE: OWL) Claims
Faruqi & Faruqi, LLP, a prominent securities law firm, is currently investigating potential claims on behalf of investors in Blue Owl Capital Inc. (NYSE: OWL). The firm encourages individuals who acquired securities from the company between February 6, 2025, and November 16, 2025 to contact Partner James (Josh) Wilson to discuss their legal rights and options.
Deadline for Lead Plaintiff Role
Investors are reminded of the February 2, 2026 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Blue Owl. The firm is prepared to represent investors who have suffered financial losses due to potential violations of federal securities laws.
Faruqi & Faruqi has a longstanding reputation for recovering significant sums for investors since its inception in 1995. The firm operates in several states, including New York, Pennsylvania, California, and Georgia.
Allegations Against Blue Owl Capital
The investigation centers around allegations that Blue Owl and its executives made misleading statements and failed to disclose critical information regarding the company’s financial status, including:
- Experiencing significant pressure on its asset base from BDC redemptions.
- Facing undisclosed liquidity issues.
- Likely to limit or halt redemptions of certain funds.
- Providing materially misleading statements about the company's business and prospects.
Impact of Recent Developments
A November 16, 2025, article from the Financial Times reported that Blue Owl had blocked redemptions in one of its private credit funds while merging with a larger vehicle. This merger could result in substantial losses for investors. Following this news, Blue Owl's stock price dropped by $0.85, or 5.8%, closing at $13.77 on November 17, 2025.
The merger will restrict Blue Owl Capital Corporation II investors from withdrawing their funds until the combination is finalized in early 2026. Once the merger occurs, investors will lose the ability to redeem shares at the fund's Net Asset Value (NAV) and will instead exchange their shares for publicly traded shares of Blue Owl, which are currently valued approximately 20% below the fund's NAV.
Encouragement for Affected Investors
Individuals who believe they may be part of the affected class are advised to act promptly. A court-appointed lead plaintiff will represent the investor with the largest financial interest in the case. Other members of the putative class can also seek to serve as lead plaintiffs through their counsel.
Faruqi & Faruqi also invites whistleblowers, former employees, and others with relevant information about Blue Owl's conduct to reach out. To learn more about the ongoing class action lawsuits involving Blue Owl Capital, visit www.faruqilaw.com/OWL or call Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).