FBRT Investor Alert: FRANKLIN BSP REALTY TRUST, INC. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Misrepresented Dividend Coverage: Levi & Korsinsky
Executive Accountability: Michael Comparato Named in Securities Action
NEW YORK, April 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors that Michael Comparato, who served as President of Franklin BSP Realty Trust, Inc. (NYSE: FBRT) throughout the Class Period before being elevated to Chief Executive Officer on February 10, 2026, is named as a defendant in a securities class action. Shareholders who purchased FBRT securities between November 5, 2024 and February 11, 2026 and lost money may find out if they qualify to recover losses at no cost. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
FBRT shares fell $1.44 per share, or 14.18%, to close at $8.71 on February 12, 2026, after the Company slashed its quarterly dividend from $0.355 to $0.20 per share. The lead plaintiff deadline is April 27, 2026.
Michael Comparato's Role During the Class Period
As President, Comparato was directly involved in day-to-day management of FBRT's commercial real estate lending operations. The complaint identifies him as privy to confidential proprietary information about the Company's business, including the status of REO liquidations and the sustainability of the $0.355 dividend. On the Q3 2025 earnings call, Comparato told investors that FBRT had "more tailwinds than headwinds" and expressed excitement about "the path to dividend coverage."
What Comparato Allegedly Oversaw
The action contends that Comparato participated in disseminating misleading statements while occupying a senior leadership role:
- Stated on October 30, 2025 that the NewPoint acquisition made FBRT "one of, if not the largest middle market lenders in the country" and that integration was "on track"
- Expressed growing "confidence and conviction" in the NewPoint acquisition just months before the dividend was cut by 44%
- On February 11, 2026, acknowledged that "it has taken longer to resolve and sell the real estate than we originally planned" and that the Company had been "over-distributing capital to investors"
- On February 12, 2026, admitted that "REO liquidations are taking longer than originally anticipated, keeping equity locked in underperforming investments"
Comparato's Certifications and Liability
Comparato is named as a defendant under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. As pleaded, he was a controlling person who participated in the operation and management of FBRT and was directly involved in drafting, producing, reviewing, or disseminating the allegedly false statements. His elevation to CEO on February 10, 2026, one day before the dividend cut announcement, raises questions about the timing of the leadership transition.
"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When a company repeatedly assures investors that dividend coverage is within reach, and then cuts the dividend by 44%, serious questions arise about what executives knew and when they knew it." -- Joseph E. Levi, Esq.
Request a free consultation about your FBRT losses or call Joseph E. Levi, Esq. at (212) 363-7500.
LEAD PLAINTIFF DEADLINE: April 27, 2026
Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
SOURCE Levi & Korsinsky, LLP
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