Class Action Lawsuit Filed Against Broadmark Realty Capital Inc.
NEW YORK, June 22, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Broadmark Realty Capital Inc. ("Broadmark" or the "Company") (NYSE: BRMK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Broadmark and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until July 28, 2025, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Broadmark securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
A class action complaint has been filed on behalf of holders of Broadmark common stock as of the record date of the Merger, alleging 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:
- 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;
- 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;
- 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;
- As a result, Ready Capital's Current Expected Credit Loss reserves and expected credit losses were materially understated;
- 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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT: Danielle Peyton, Pomerantz LLP [email protected] 646-581-9980 ext. 7980
SOURCE: Pomerantz LLP
