← Back to ARCC filing summaryThis is the extracted source text from the SEC filing. Formatting may differ from the original document.
From time to time, we, our executive officers, directors and our investment adviser, its affiliates and/or any of their respective principals and employees are subject to legal proceedings, including those arising from our investments in our portfolio companies, and as a result, incur significant costs and expenses in connection with such legal proceedings.
We and our investment adviser are also subject to extensive regulation, which, from time to time, results in requests for information from us or our investment adviser or regulatory proceedings or investigations against us or our investment adviser, respectively. We incur significant costs and expenses in connection with any such information requests, proceedings and investigations.
On May 26, 2026, a derivative action was brought by Martin Siegel purportedly on our behalf, as plaintiff, in the United States District Court for the Southern District of New York, alleging that our investment adviser received excessive advisory fees in violation of its statutory fiduciary duty under Section 36(b) of the Investment Company Act. The action seeks recovery of damages, including disgorgement of investment advisory fees paid to our investment adviser, injunctive relief, costs and rescission of the investment advisory and management agreement pursuant to Section 47(b) of the Investment Company Act. This litigation is in its preliminary stages. Our investment adviser disputes the allegations and intends to vigorously defend against them. The outcome of this matter is inherently uncertain, and we and our investment adviser are unable to predict the ultimate outcome or estimate the amount or range of loss, if any, that may result from this matter.