
Introduction to the Broadmark Class Action Lawsuit
The Broadmark class action lawsuit seeks to represent holders of Broadmark Realty Capital Inc. (NYSE: BRMK) common stock as of the record date of the May 2023 merger between Broadmark and Ready Capital Corporation (NYSE: RC) (the “Merger”). Captioned Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.), the Broadmark class action lawsuit charges Broadmark, Ready Capital, certain of Broadmark’s and Ready Capital’s top executives and directors, and Ready Capital’s external asset manager with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Broadmark class action lawsuit or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected].
Lead plaintiff motions for the Broadmark class action lawsuit must be filed with the court no later than July 28, 2025.
Below are answers to the six most frequently asked questions by investors about the lawsuit.
1. What Are the Allegations in the Broadmark Class Action Lawsuit
Broadmark and Ready Capital are real estate investments trusts. On May 30, 2023, Broadmark shareholders voted to approve the merger of Broadmark and Ready Capital, which closed the next day.
The Broadmark class action lawsuit 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:
(i) 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;
(ii) 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;
(iii) 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;
(iv) as a result, Ready Capital’s Current Expected Credit Loss reserves and expected credit losses were materially understated; and (v) 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.
The price of Ready Capital stock has remained significantly below the Merger price as of the time the Broadmark class action lawsuit was filed.

2. What Does a Lead Plaintiff in a Securities Class Action Do?
A lead plaintiff in a securities class action lawsuit plays a pivotal role in representing the interests of all the investors who have been allegedly wronged by a company’s actions. In the context of a Broadmark class action lawsuit, the lead plaintiff is typically an investor or group of investors who have suffered significant financial losses as a result of fraudulent or misleading practices by Broadmark.
The responsibilities of the lead plaintiff include making critical decisions about the direction of the lawsuit, coordinating with legal counsel, and potentially testifying in court. By stepping forward, the lead plaintiff ensures that the case can proceed efficiently and that there is a representative voice advocating for the collective interests of all affected shareholders.
Additionally, the lead plaintiff is tasked with overseeing the litigation process to ensure that it is conducted in a manner that is fair and beneficial to all class members. This includes reviewing and approving settlement offers, which must be adequate and reasonable in compensating the losses incurred by the class members. In a Broadmark class action lawsuit, the lead plaintiff’s actions can significantly influence the outcome of the case and determine whether a favorable settlement or judgment is achieved.
The lead plaintiff’s commitment and active participation are crucial for holding the defendant accountable and securing justice for all investors involved.
Furthermore, the lead plaintiff helps to maintain transparency throughout the litigation process by keeping other class members informed about significant developments in the case. This communication helps to build trust and ensure that all class members feel represented and supported. In summary, the role of a lead plaintiff in a securities class action lawsuit, such as a Broadmark class action lawsuit, is central to achieving a successful resolution that addresses the grievances of defrauded investors and upholds the integrity of financial markets.
3. What is a Securities Class Action Lawsuit?
A securities class action lawsuit is a legal proceeding in which a group of investors collectively brings a claim against a company, typically alleging fraudulent or misleading practices that resulted in financial losses. These lawsuits are often filed when investors believe that a company has violated securities laws by providing false or incomplete information about the company’s financial health, operations, or prospects.
The goal of a securities class action lawsuit is to recover the financial losses incurred by the investors due to the company’s alleged wrongful actions. In such cases, the court must first certify the class, which involves determining that the plaintiffs have enough in common to pursue their claims as a single group.
One notable example is the Broadmark lawsuit, where investors have banded together to file a claim against Broadmark Realty Capital Inc. The plaintiffs in the Broadmark lawsuit allege that the company made false and misleading statements regarding its business operations and financial performance, which led to significant investment losses.
The lawsuit seeks to hold Broadmark accountable for any breaches of fiduciary duty and violations of securities laws. Through this collective legal action, investors aim to obtain compensation for their losses and ensure greater corporate transparency and accountability in the future.
Securities class action lawsuits play a critical role in maintaining fairness and integrity within financial markets. They provide a mechanism for individual investors, who might lack the resources to pursue legal action independently, to collectively seek redress against large corporate entities.
Additionally, these lawsuits serve as a deterrent against corporate malfeasance, encouraging companies to adhere strictly to securities regulations and act in the best interests of their shareholders. The Broadmark lawsuit exemplifies how such legal actions function as a vital tool for investor protection and corporate governance.

4. What is the Privative Securities Reform Act of 1995?
The Private Securities Litigation Reform Act (PSLRA) of 1995 was enacted by the United States Congress to address the growing concerns over frivolous securities lawsuits that were seen as a hindrance to the capital markets. This landmark legislation aimed to implement more stringent requirements for filing securities fraud lawsuits, thereby deterring baseless legal actions and protecting corporations and investors alike.
Under the PSLRA, plaintiffs are required to present substantial evidence of fraudulent intent before proceeding with a lawsuit, effectively raising the bar for initiating securities litigation.
One notable aspect of the PSLRA is the imposition of a “safe harbor” provision for forward-looking statements made by companies. This provision offers protection to corporations from liability, provided they include meaningful cautionary statements that identify important factors that could cause actual results to differ materially from those projected. The act also mandates heightened pleading standards, requiring plaintiffs to specify each statement alleged to be misleading and the reasons why.
This reduces the likelihood of Broadmark lawsuits, which are often characterized by vague or generalized allegations of fraud without concrete evidence.
Moreover, the PSLRA introduces a mandatory stay of discovery during the pendency of any motion to dismiss, aiming to prevent plaintiffs from using costly and burdensome discovery processes as leverage to force settlements. Furthermore, it establishes lead plaintiff provisions that prioritize institutional investors with significant stakes in the litigation, ensuring that those with genuine interests in the case guide the proceedings.
Overall, the Private Securities Litigation Reform Act of 1995 has played a pivotal role in curbing abusive litigation practices while enhancing investor protection and fostering a more stable and predictable environment for capital markets.

5. How Is the Greatest Financial Interest Determined in the Broadmark Class Action Lawsuit?
The determination of the greatest financial interest in the Broadmark Class Action Lawsuit is a meticulous process that involves several key factors. Primarily, courts assess the financial losses incurred by plaintiffs to ascertain who has the most substantial stake in the litigation. This process typically starts with an evaluation of the amount of money lost due to the alleged wrongful actions that prompted the lawsuit.
The claimant with the highest quantifiable losses is often considered to have the greatest financial interest. Furthermore, courts may also consider other elements such as the timing of stock purchases and sales, and the overall impact on the plaintiff’s portfolio.
The goal is to identify the party most affected by the purported misconduct, ensuring they are adequately represented and have a significant role in the proceedings. Ensuring fair representation helps maintain the integrity of the Broadmark Class Action Lawsuit, thereby fostering trust in the judicial process.

If I Sold my Stock Can I Still be Apart of the Broadmark Class Action Lawsuit?
If you have sold your stock, you may still be eligible to participate in the Broadmark lawsuit. Class action lawsuits typically include all individuals who bought or held stock during a specific period, regardless of whether they still own the stock at the time the lawsuit is filed or settled.
The key factor is whether you incurred losses as a result of the alleged wrongdoing by the company. It is essential to review the details of the Broadmark lawsuit to understand the eligibility criteria and to consult with a legal professional who can provide guidance based on your specific circumstances. Participation in the lawsuit could potentially allow you to recover some of your losses, even if you no longer hold the stock.
Contact Timothy L. Miles Today About a Broadmark Class Action Lawsuit
If you suffered losses in Broadmark stock, call us today for a free case evaluation about a Broadmark Class Action Lawsuit. 855-846-6529 or [email protected] (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: [email protected]
Website: www.classactionlawyertn.com