Rosen Law Firm, a global investor rights law firm, announces that a shareholder filed a class action on behalf of persons and entities who held common stock of Broadmark Realty Capital Inc. (NYSE: BRMK) as of the record date of the May 30, 2023 Merger (the “Merger Date”) between Broadmark and Ready Capital Corporation. Broadmark describes itself as a “real estate investment trust.”

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The Allegations: Rosen Law Firm is Investigating the Allegations that Broadmark Realty Capital Inc. (NYSE: BRMK) Misled Investors Regarding its Business Operations.

According to the lawsuit, the Complaint 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: (1) 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; (2) 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; (3) 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; (4) as a result, Ready Capital’s Current Expected Credit Loss reserves and expected credit losses were materially understated; and (5) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.

What Now: You may be eligible to participate in the class action against Broadmark Realty Capital Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 28, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders.

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