Broadmark Class Action Lawsuit: Authoritative, Informative and Complete Answers to 8 Excellent Frequently Asked Questions [2025]

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 for answers to eight frequently asked questions from investors in the Broadmark Class Action Lawsuit.

1. What Is a Consolidated Complaint?

A consolidated complaint is a legal document that combines multiple individual complaints into a single, unified complaint. This process is typically used in class action lawsuits where numerous plaintiffs have similar grievances against the same defendant or group of defendants. Consolidating complaints streamlines the legal process, reducing redundancy and ensuring that the court system operates more efficiently. This is particularly beneficial in cases involving numerous plaintiffs, such as the Broadmark Class Action Lawsuit, where many individuals may have been affected by the same alleged misconduct.

In the context of a Broadmark Class Action Lawsuit, a consolidated complaint would bring together all the allegations from various investors or stakeholders who claim to have suffered losses due to the company’s actions. By consolidating these individual complaints, the plaintiffs can present a stronger, unified case against Broadmark, potentially increasing their chances of a favorable outcome. This approach also helps in managing legal resources more effectively and can lead to quicker resolutions, as the court can address all related issues in one comprehensive proceeding.

The use of consolidated complaints is a common practice in complex litigation, especially in class action lawsuits. It ensures that all plaintiffs’ voices are heard and that their grievances are collectively addressed. In the Broadmark Class Action Lawsuit, a consolidated complaint would allow the court to consider the full scope of the alleged damages and misconduct, providing a clearer picture of the case’s overall impact. This method not only benefits the plaintiffs but also aids the judicial system by simplifying the litigation process and promoting judicial economy.

2. What Is a Motion to Dismiss?

A motion to dismiss is a formal request made to a court by a defendant, asking the court to dismiss a case brought against them. This legal maneuver is typically utilized in the early stages of litigation and can be based on various grounds such as lack of jurisdiction, improper service of process, failure to state a claim upon which relief can be granted, or other deficiencies that could render the lawsuit invalid. In the context of the Broadmark Lawsuit, a motion to dismiss might be filed if the defendant believes that the claims made by the plaintiff are insufficiently substantiated or legally flawed.

Filing a motion to dismiss is an essential aspect of pretrial proceedings and can significantly impact the trajectory of a case. If granted, it can lead to the termination of the lawsuit without a trial, saving time and resources for both parties. Conversely, if denied, the case proceeds to discovery and potentially to trial. In high-profile cases like the Broadmark Lawsuit, motions to dismiss are closely scrutinized as they can set important legal precedents and influence public perceptions.

The strategic use of a motion to dismiss requires careful consideration of legal standards and procedural rules. Lawyers must craft compelling arguments that highlight any weaknesses in the plaintiff’s case while adhering to strict legal protocols. Success in such motions not only hinges on strong legal reasoning but also on understanding the nuances of the specific case at hand, such as those presented in complex financial disputes like the Broadmark Lawsuit.

Ultimately, a motion to dismiss serves as a critical tool in the defense arsenal, aiming to protect clients from unwarranted litigation and ensuring that only meritorious claims advance through the judicial system.

3. What Is a Lead Plaintiff?

A lead plaintiff, also known as a representative plaintiff, plays a crucial role in a class action lawsuit. This individual or entity represents the interests of the entire group of plaintiffs in the litigation. The lead plaintiff is responsible for guiding the lawsuit, making strategic decisions, and providing testimony on behalf of the class members.

In the context of a Broadmark Class Action Lawsuit, the lead plaintiff would be tasked with demonstrating how Broadmark’s actions have adversely impacted all investors in the class. The court typically appoints the lead plaintiff based on factors such as the size of their financial losses and their capability to represent the class effectively. By assuming this role, the lead plaintiff aims to ensure that all affected parties receive fair compensation and that justice is served.

4. What Are Class Members?

Class members are individuals or entities that are part of a larger group involved in a class action lawsuit. In such legal actions, one or several plaintiffs, known as lead plaintiffs, file a lawsuit on behalf of a larger group with similar claims. These class members typically have experienced similar harm or injustice from the defendant’s actions and seek collective redress through the court system.

For instance, in a Broadmark Lawsuit, class members would be investors who suffered financial losses due to alleged wrongful conduct by Broadmark Realty Capital Inc. By joining forces, class members leverage collective legal resources and ensure a more efficient resolution compared to filing individual lawsuits. This mechanism is particularly beneficial for addressing widespread issues affecting numerous people or entities similarly.

5. What is the Lead Plaintiff Process in the Broadmark Class Action Lawsuit?

The Private Securities Litigation Reform Act of 1995 allows investors who purchased Broadmark securities during the class period to seek appointment as lead plaintiff in the lawsuit. The lead plaintiff plays a crucial role in representing the interests of the entire class.

Criteria for Lead Plaintiff

To be appointed as lead plaintiff, an investor must meet specific criteria:

• Financial Interest: The investor must demonstrate that they have the largest financial stake in the outcome of the case.
• Typicality: The lead plaintiff’s claims must be typical of those of other class members.
• Adequacy: The lead plaintiff must be able to adequately represent the interests of the class.

6. What Are the Benefits of Serving as a Lead Plaintiff in the Broadmark Lawsuit?

1. 

   Negotiating more competitive attorney fees and reducing litigation costs.

2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. 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
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

7. What Are the Responsibilities of the Lead Plaintiff in the Broadmark Lawsuit?

1. Selecting, monitoring, and overseeing Lead Counsel.​
2. Reviewing and commenting on court filings on behalf of the class.
3. Discussing litigation strategies with the Lead Counsel.
4. Attending depositions (if necessary) and giving a deposition.
5. Attending hearings (if necessary).
6. Participating in mediation and the trial (if necessary).
7. Provide input on any decision concerning the settlement of the securities class action.