Overview

A class action lawsuit has been filed against Franklin BSP Realty Trust, Inc. (“FBRT” or the “Company”) (NYSE : FBRT) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws. The FBRT lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired FBRT securities between November 5, 2024, and February 11, 2026, inclusive (the “Class Period”). Investors have until April 27, 2026, to seek appointment as lead plaintiff of the FBRT class action lawsuit.

FBRT is a real estate investment trust (“REIT”) that originates, acquires, and manages a portfolio of commercial real estate debt secured by properties located in the United States.

The complaint alleges that throughout the Class Period Defendants assured investors that the Company’s quarterly dividend of $0.355 per share was “appropriate,” sustainable, and supported by the Company’s future earnings potential.  In truth, Defendants overstated FBRT’s prospects and the Company was over-distributing capital to investors while certain real estate assets remained tied up longer than expected.  Accordingly, the Company needed to reduce its quarterly dividend in order to “stabilize … book value and match the earnings power of [FBRT] to distributions” as it was “no longer prudent to sacrifice book value to pay th[e] dividend.”    

The truth began to be revealed on February 10, 2026, when the Company announced a leadership transition in which Defendant Michael Comparato would replace Defendant Richard J. Byrne as CEO. On this news, FBRT stock declined nearly 1%. 

Then, on February 11, 2026, the Company announced financial earnings for the fourth quarter and full year of 2025.  FBRT disclosed earnings showing declining business performance and announced the Company would cut its quarterly dividend from $0.355 to $0.20. 

On this news, the price of FBRT stock fell $1.44 per share, or more than 14%, to close at $8.71 per share on February 12, 2026.

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If you purchased or otherwise acquired FBRT securities between November 5, 2024, and February 11, 2026, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the FBRT class action lawsuit is April 27, 2026.