FBRT Investor Alert: FRANKLIN BSP REALTY TRUST, INC. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Concealing Dividend Sustainability: Levi & Korsinsky

Important Information Regarding Section 20(a) Individual Liability Claims

NEW YORK, March 30, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP alerts investors in Franklin BSP Realty Trust, Inc. (NYSE: FBRT) that three senior executives are named as individual defendants in a securities class action covering purchases between November 5, 2024 and February 11, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.

FBRT shares fell $1.44 per share, or 14.18%, closing at $8.71 on February 12, 2026, after the Company disclosed a dividend cut from $0.355 to $0.20 per share. To be considered for lead plaintiff, investors must file by April 27, 2026.

The Named Individual Defendants

The action names the following officers as individual defendants under Section 20(a) of the Securities Exchange Act of 1934:

Richard J. Byrne served as Chief Executive Officer until February 10, 2026, and as Chairman of the Board of Directors at all relevant times. The complaint contends Byrne directly participated in Company management and was privy to confidential information about FBRT's dividend sustainability.
Jerome S. Baglien served as Chief Financial Officer, Chief Operating Officer, and Treasurer throughout the Class Period. The lawsuit asserts Baglien was directly involved in drafting and disseminating the allegedly misleading statements about dividend coverage.
Michael Comparato served as President until February 10, 2026, when he replaced Byrne as CEO. According to the action, Comparato ultimately disclosed on February 12, 2026 that REO liquidations had taken "longer than originally anticipated, keeping equity locked in underperforming investments."

Section 20(a) Control Person Framework

The complaint charges that each Individual Defendant exercised control over FBRT's public communications, including earnings call statements and press releases that repeatedly affirmed the $0.355 dividend level. As controlling persons, they are alleged to bear personal liability for the Company's violations of Section 10(b) and Rule 10b-5.

Sarbanes-Oxley Certification Obligations

As CEO and CFO, the Individual Defendants were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify the accuracy of FBRT's periodic SEC filings. The action alleges these certifications were made while the defendants knew or recklessly disregarded that:

The $0.355 dividend was not supported by distributable earnings, which stood at only $0.27 per share as of Q2 2025
REO resolution timelines were materially slower than represented to investors
The Company was "over-distributing capital to investors" and eroding book value
Capital redeployment projections used to justify maintaining the dividend lacked a reasonable basis

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When senior executives personally certify financial statements while allegedly aware that core representations about dividend sustainability lack support, investors deserve accountability." -- Joseph E. Levi, Esq.

Submit your information to join the recovery or call Joseph E. Levi, Esq. at (212) 363-7500.

Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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