INVESTOR DEADLINE MONDAY: Investors File Class Action Lawsuit Against Broadmark Realty Capital Inc., Ready Capital Corporation, Others and Attorneys Announce Opportunity for Investors with Substantial Losses to Lead Class Action Lawsuit - BRMK; RC

Core Viewpoint - The Broadmark Realty Capital Inc. class action lawsuit alleges violations of the Securities Exchange Act of 1934 related to the merger with Ready Capital Corporation, with claims of misleading statements in the proxy statement used for shareholder approval [1][3]. Group 1: Lawsuit Details - The class action lawsuit is titled Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.) and involves Broadmark, Ready Capital, and certain executives and directors from both companies [1][2]. - The lawsuit claims that a significant portion of Ready Capital's borrowers faced financial distress due to high interest rates, which increased their borrowing costs [3]. - It is alleged that an oversupply of multifamily properties in Ready Capital's markets limited borrowers' ability to raise rents to cover growing debt costs [3]. - A major development project acquired during the merger, valued at approximately $500 million, faced significant setbacks, including cost overruns and construction delays [3]. - The lawsuit contends that Ready Capital's expected credit losses were materially understated, affecting financial projections related to earnings and dividends [3]. Group 2: Legal Process and Representation - Investors who held Broadmark common stock as of the merger record date can seek appointment as lead plaintiff in the class action lawsuit [5]. - The lead plaintiff will represent the interests of all class members and can choose a law firm for litigation [5]. - Robbins Geller Rudman & Dowd LLP, the law firm representing the plaintiffs, has a strong track record in securities fraud cases, having recovered over $2.5 billion for investors in 2024 alone [6].