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 lawsuit must be filed with the court no later than July 28, 2025.
Read on for answers to the eight most frequently asked questions from investors about the Broadmark lawsuit.
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 lawsuit was filed.
What Is 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
- Broadmark 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.
When Is the Lead Plaintiff Deadline 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 in the Broadmark lawsuit must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
What Are the Benefits of Serving as a Lead Plaintiff in the Broadmark Class Action Lawsuit?
- 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.
What Are the Responsibilities the Lead Plaintiff Will Have in the in the Broadmark Class Action Lawsuit?
- 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.
What Are the Eligibility Criteria for Lead Plaintiff Appointment in the Broadmark Class Action Lawsuit?
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) common stock 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 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.
What Are the Legal Requirements for Prevailing in the Broadmark Class Action Lawsuit?
- Material Misrepresentation or Omission
- Scienter
- Connection to Securities Transaction
- Reliance
- Economic Loss
- Loss Causation
Who is Affected by the Broadmark Class Action Lawsuit?
The Broadmark class action lawsuit primarily affects investors who purchased shares during the period in which the alleged misconduct occurred. If you invested in Broadmark Realty Capital Inc. during this time, you could be part of the affected class and eligible for compensation if the lawsuit succeeds.
Identifying whether you are part of the affected group is crucial for understanding your rights and potential benefits. The lawsuit may involve a specific time frame and set of circumstances that define the class of investors who can participate. Knowing these details will help you determine your eligibility and take appropriate action.
In addition to investors, the lawsuit can also impact the company’s executives, board members, and other stakeholders. The outcome of the Broadmark lawsuit could influence Broadmark’s reputation, financial stability, and future operations, affecting all parties associated with the company. Staying informed about the lawsuit’s progress is essential for anyone connected to Broadmark Holdings.
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
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