Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against Broadmark Realty Capital Inc., Ready Capital Corporation, Others and Announces Opportunity for Investors with Substantial Losses to Investor Lead Lawsuit – BRMK; RC

Robbins Geller Rudman & Dowd LLP announces that holders of Broadmark Realty Capital Inc. (NYSE: BRMK) common stock as of the record date of the May 2023 merger between Broadmark and Ready Capital Corporation (NYSE: RC) (the “Merger”), have until July 28, 2025 to seek appointment as lead plaintiff of the Broadmark class action lawsuit. Captioned Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.), the Broadmark class action lawsuit charges Broadmark, Ready Capital, certain of Broadmark’s and Ready Capital’s top executives and directors, as well as Ready Capital’s external asset manager with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Broadmark class action lawsuit, please provide your information here:

https://www.rgrdlaw.com/cases-broadmark-realty-capital-inc-class-actio ...

You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [e-mail].

CASE ALLEGATIONS: Broadmark and Ready Capital are real estate investments trusts. On May 30, 2023, Broadmark shareholders voted to approve the merger of Broadmark and Ready Capital, which closed the next day.

The Broadmark class action lawsuit alleges that the proxy statement used to solicit the support of Broadmark shareholders for the Merger contained false and/or misleading statements and/or failed to disclose that: (i) a material portion of borrowers within Ready Capital’s originated portfolio were experiencing significant financial distress due to high interest rates that had increased their borrowing costs; (ii) an oversupply of multifamily properties in Ready Capital’s markets of operation had severely limited the ability of Ready Capital borrowers to raise their rents by the amounts necessary to cover their growing debt costs; (iii) a major development project acquired in Ready Capital’s acquisition of Mosaic Real Estate Credit, LLC, Mosaic Real Estate Credit TE, LLC, and MREC International Incentive Split, LP (a Ritz-Carlton located in Portland, Oregon), which accounted for approximately $500 million of Ready Capital’s acquired loan portfolio, had experienced catastrophic setbacks since its inception, including significant cost overruns, construction delays, and funding shortfalls; (iv) as a result, Ready Capital’s Current Expected Credit Loss reserves and expected credit losses were materially understated; and (v) consequently, Ready Capital’s financial projections regarding Ready Capital’s Distributable Earnings per share, dividends per share, and book value per share had no basis in fact when made.