A securities class action has been filed against Franklin BSP Realty Trust, Inc. (FBRT) on behalf of persons or entities who purchased or otherwise acquired publicly traded FBRT securities between November 5, 2024 through February 11, 2026. This case has been filed in the USDC – EDNY.
On February 10, 2026, after the market closed, the Company issued a press release entitled “Franklin BSP Realty Trust Announces Leadership Transition.” It stated that the Company “announced that the Board of Directors of the Company has appointed Michael Comparato, currently the Company’s President, as Chief Executive Officer and Brian Buffone as President, effective immediately. Richard Byrne will continue as Chairman of the Board of Directors.”
On this news, FBRT stock fell 0.97% on February 11, 2026.
On February 11, 2026, after the market closed, the Company issued a press release entitled “Franklin BSP Realty Trust, Inc. Announces Fourth Quarter and Full Year 2025 Results” (the “Q4 Release”). The Q4 Release preliminarily disclosed the following earnings, showing declining business performance compared to the prior year:
The complaint alleges that statements made by the defendent were materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations and prospects, which were known to Defendants or recklessly disregarded by them. FBRT’s dividend was core to its operations because a steady dividend yield was material to its investors, and a growing or steady dividend is the primary reason for investors to invest in REITs. Thus, senior management had access to and monitored the truthful information about FBRT’s dividend sustainability and FBRT’s operations, when they made the false and misleading statements herein. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants recklessly overstated Franklin BSP Realty Trust’s prospects; (2) Defendants recklessly overstated Franklin BSP Realty Trust’s ability to maintain the $0.355 dividend; and (3) as a result, Defendants’ statements about Franklin BSP Realty Trust’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.