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.
Read on to learn everything you need to know about the lead plaintiff process in the Broadmark class action lawsuit.
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.
The Lead Plaintiff Process in the Broadmark Class Action Lawsuit
Under the Private Securities Litigation Reform Act of 1995 (PSLRA):
- Any investor who purchased and suffered losses in Broadmark stock may seek appointment as lead plaintiff in the Broadmark class action lawsuit.
- A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
- A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
- The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.
- An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
The Lead Plaintiff Deadline in in the Broadmark Lawsuit
Lead plaintiff motions for the Broadmark class action lawsuit must be filed with the court no later than July 28, 2025. When a securities class action is filed:
- The person who files the first complaint is required to publish a notice announcing the filing.
- Anyone who wants to be the lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
The Benefits of Serving as a Lead Plaintiff
- Negotiating more competitive attorney fees and reducing litigation costs.
- Managing the litigation by overseeing the progress of the case and reviewing important filings.
- Participating in mediation and settlement discussions.
- Having a voice in decision-making processes regarding the settlement.
- No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a settlement or judgment recovery for the class
- Potentially enjoying long-term benefits from governance reform resulting from the litigation.
The Responsibilities the Lead Plaintiff Will Have
- Selecting, monitoring, and overseeing Lead Counsel.
- Reviewing and commenting on court filings on behalf of the class.
- Discussing litigation strategies with the Lead Counsel.
- Attending depositions (if necessary) and giving a deposition.
- Attending hearings (if necessary).
- Participating in mediation and the trial (if necessary).
- Provide input on any decision concerning the settlement of the securities class action.
The Eligibility Criteria for Lead Plaintiff Appointment
To be eligible for appointment as the lead plaintiff in the Broadmark Class Action Lawsuit, an investor must meet the following criteria:
- Securities Acquisition: The investor must have purchased or acquired Broadmark Realty Capital Inc. (NYSE: BRMK) securities as of the record date of the May 2023 merger between Broadmark and Ready Capital Corporation (NYSE: RC) (the “Merger”).
- Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by Broadmark Health and its executives.
- Typicality and Adequacy: The investor’s legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.
It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.
The Legal Requirements for Prevailing
- Material Misrepresentation or Omission
- Scienter
- Connection to Securities Transaction
- Reliance
- Economic Loss
- Loss Causation
Frequently Asked Questions about the Broadmark Class Action
What initiated the Broadmark class action lawsuit?
The lawsuit was initiated by investors alleging that Broadmark provided misleading information regarding its financial health and operations, resulting in financial losses.
How can I join the class action lawsuit?
If you believe you are affected, you should contact a legal professional to discuss your eligibility and the necessary steps to join the class action.
What are the potential benefits of a class action lawsuit?
Class action lawsuits allow individual investors to collectively seek justice and compensation, which might be challenging to pursue individually. They also promote corporate accountability.
How long will the lawsuit take to resolve?
The duration of class action lawsuits can vary significantly, depending on the complexity of the case, legal strategies, and whether settlements are reached. It could take several months to years.
What should I do as an investor during this time?
Stay informed about the lawsuit, review your investment strategy, and consider consulting with financial advisors to assess the impact on your portfolio.
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
