Broadmark Realty Capital Inc. Investors: Please contact the Portnoy Law Firm to recover your losses. July 28, 2025 Deadline to file Lead Plaintiff Motion.

Core Viewpoint - Broadmark Realty Capital Inc. is facing a class action lawsuit related to its merger with Ready Capital Corporation, alleging misleading statements in the proxy statement used for shareholder approval [3]. Group 1: Merger Details - The merger between Broadmark and Ready Capital was approved by Broadmark shareholders on May 30, 2023, and finalized on May 31, 2023 [3]. - The lawsuit claims that the proxy statement contained materially false and/or misleading statements and omitted key facts [3]. Group 2: Allegations and Financial Issues - A significant portion of borrowers in Ready Capital's loan portfolio are experiencing financial distress due to rising interest rates, which have increased their borrowing costs [5]. - An oversupply of multifamily properties in Ready Capital's core markets is limiting borrowers' ability to raise rents to offset growing debt obligations [5]. - A major development project, a Ritz-Carlton in Portland, Oregon, faced severe setbacks, including cost overruns, construction delays, and funding shortfalls, representing approximately $500 million of Ready Capital's acquired loan portfolio [5]. - As a result of these issues, Ready Capital's Current Expected Credit Loss (CECL) reserves and projected credit losses were significantly understated [5]. - Consequently, Ready Capital's financial projections, including estimates of Distributable Earnings per share, dividends per share, and book value per share, lacked a reasonable basis when issued [5].