LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased Blue Owl Capital Inc. (“Blue Owl” or the “Company”) (NYSE: OWL) securities between February 6, 2025 and November 16, 2025, inclusive (the “Class Period”). Blue Owl investors have until February 2, 2026 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR BLUE OWL CAPITAL INC. (OWL) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On October 30, 2025, before the market opened, Blue Owl reported financial results for the third quarter of 2025. Blue Owl reported, among other things, fee-related earnings of only $376.2 million, which missed consensus estimates; fee related earnings margins of 57.1% which missed expectations by roughly 20 basis points; and performance revenue, which fell 33% year over year to only $188,000.
On this news, the Company’s share price fell $0.70 per share, or 4.23%, to close at $15.86 per share on October 30, 2025, on unusually heavy trading volume.
On November 5, 2025, after the market closed, Blue Owl’s business development companies (“BDCs”), Blue Owl Capital Corporation (“OBDC”) and Blue Owl Capital Corporation II (“OBDC II”) announced they had entered into a definitive merger agreement and that “OBDC II does not anticipate conducting additional tender offers prior to the merger.” Under the terms of the proposed merger, “shareholders of OBDC II will receive newly issued whole shares of OBDC for each share of OBDC II based on the exchange ratio determined prior to closing.” “The exchange ratio will be calculated based upon (i) the NAV [net asset value] per share of OBDC and OBDC II, each determined before merger close and (ii) the market price of OBDC common stock (‘OBDC Price’) before merger close.”
On this news, the Company’s share price fell $0.74 per share or 4.72%, to close at $14.95 per share on November 6, 2025, on unusually heavy trading volume.
Then, on November 16, 2025, the Financial Times published an article entitled “Blue Owl private credit fund merger leaves some investors facing 20% hit.” The article provided an interview with the chief financial officer of OBDC, Jonathan Lamm (“Lamm”), revealing that “If shareholders were to vote down the deal, [Lamm] acknowledged that Blue Owl Capital Corporation II might be forced to limit redemptions.”
The article further reported details of two critical aspects of the merger. First, OBDC II investors would indeed be blocked from making any redemptions until the merger completes in 2026. Second, as part of the merger, OBDC II shareholders would see the value of their investments fall by about 20%. The article affirmed Lamm “conceded . . . that at current prices, the investors in Blue Owl Capital Corporation II could take a potential haircut on their investments.”
On this news, the Company’s share price fell $0.85 per share, or 5.8%, to close at $13.77 per share on November 17, 2025, on unusually heavy trading volume.
On November 19, 2025, Blue Owl announced the termination of the proposed merger, citing “current market conditions.”
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Blue Owl was experiencing a meaningful pressure on its asset base from BDC redemptions; (2) that, as a result, the Company was facing undisclosed liquidity issues; (3) that, as a result, the Company would be likely to limit or halt redemptions of certain BDCs; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Contact Us To Participate or Learn More:
If you purchased Blue Owl securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
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Contacts
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
