Blue Owl Capital Faces Class Action Lawsuit Over Alleged Liquidity Concealment

2025-12-27 companies

New York, Friday, 26 December 2025.
The Schall Law Firm has filed a class action lawsuit against Blue Owl Capital, alleging the firm concealed critical liquidity issues and pressure on its asset base from redemptions.

Legal Filing Details

The litigation, filed in the United States District Court, centers on alleged violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder [1]. The class action represents investors who purchased Blue Owl securities between February 6, 2025, and November 16, 2025 [1]. According to the complaint, the alternative asset manager made materially false and misleading statements regarding its financial health, specifically failing to disclose that it was experiencing significant pressure on its asset base resulting from redemptions within its Business Development Companies (BDCs) [3][4].

Allegations of Undisclosed Liquidity Constraints

The core of the plaintiffs’ argument rests on the claim that Blue Owl Capital was facing undisclosed liquidity issues severe enough to potentially force the company to limit or halt redemptions for certain BDCs [4]. The lawsuit asserts that throughout the class period, the company’s positive statements about its business operations and prospects were misleading because they lacked a reasonable basis in light of these internal financial strains [4]. These allegations paint a concerning picture for a firm that relies heavily on maintaining investor confidence to deploy capital across its platforms.

Market Reaction and Valuation Context

Following these developments, Blue Owl Capital’s stock has faced downward pressure. As of midday on December 26, 2025, shares were trading at $15.14, representing a decline of 2.10% from the previous session [2]. Other market data indicates the price dipped as low as $15.10, a 2.30% decrease [7]. This recent volatility follows a closing price of $15.46 on December 24, 2025 [5]. Despite the recent dip, the company’s valuation remains steep relative to the broader market; prior to this week’s trading, the stock carried a Price-to-Earnings (P/E) ratio of 193.25x, significantly higher than the US market average of 44.97x [5].

Broader Legal Scrutiny and Company Profile

The legal challenges facing Blue Owl Capital are intensifying as multiple firms mobilize. In addition to the Schall Law Firm, Bronstein, Gewirtz & Grossman, LLC filed a class action lawsuit on December 25, 2025, echoing similar allegations regarding the company’s failure to disclose material adverse facts [3]. The Law Offices of Frank R. Cruz have also announced the opportunity for investors to lead the securities fraud lawsuit [4]. Shareholders who suffered losses during the defined class period have until February 2, 2026, to petition the court to be appointed as lead plaintiff [1][3].

Sources

Class Action Securities Fraud