BRMK INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Broadmark Realty Capital Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - A class action lawsuit has been filed against Broadmark Realty Capital Inc. and Ready Capital Corporation for alleged violations of federal securities laws related to their merger [1][2]. Group 1: Lawsuit Details - The lawsuit seeks damages for investors who held Broadmark common stock as of May 30, 2023, the date of the merger with Ready Capital [2]. - The complaint alleges that the proxy statement soliciting shareholder support for the merger contained false or misleading statements and failed to disclose significant financial distress among borrowers in Ready Capital's portfolio due to high interest rates [3]. - It is claimed that an oversupply of multifamily properties limited the ability of Ready Capital borrowers to raise rents to cover growing debt costs [3]. - A major development project acquired during the merger, valued at approximately $500 million, faced severe setbacks including cost overruns and construction delays, which were not disclosed [3]. - As a result of these issues, Ready Capital's expected credit losses and financial projections were materially understated [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Broadmark have until July 28, 2025, to request to be appointed as lead plaintiff in the class action [4]. - The law firm representing the investors operates on a contingency fee basis, meaning they will only collect fees if the case is successful [5]. Group 3: Law Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized law firm specializing in securities fraud class actions and has recovered hundreds of millions for investors [6].