Robbins Geller Takes Action: Class Lawsuit Filed Against Broadmark Realty Capital and Ready Capital
On June 23, 2025, Robbins Geller Rudman & Dowd LLP announced the initiation of a class action lawsuit against Broadmark Realty Capital Inc. (NYSE: BRMK) and Ready Capital Corporation (NYSE: RC). This legal action signifies a critical opportunity for investors who have experienced substantial financial losses as a result of the merger between Broadmark and Ready Capital. The law firm is especially focused on the shareholders who held Broadmark common stock as of the merger's record date in May 2023. Investors are encouraged to step forward and seek appointment as lead plaintiff for this class action lawsuit, which is officially titled Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.). The class action alleges violations of the Securities Exchange Act of 1934 by Broadmark, Ready Capital, and several of their top executives and directors. The lawsuit claims that crucial information regarding the financial health of borrowers within Ready Capital's portfolio was either misrepresented or omitted during the proxy statement solicitation for shareholder support of the merger. Specifically, it is alleged that a significant number of borrowers were under financial distress due to increased interest rates, which in turn exacerbated their borrowing costs. Additionally, an oversupply of multifamily properties in the areas where Ready Capital operated restricted the ability of these borrowers to adjust their rents to cover burgeoning debts. Notably, the lawsuit highlights a development project acquired through Ready Capital's takeover of Mosaic Real Estate Credit LLC, which was crucial to its financial portfolio but faced several catastrophic issues, including budget overruns and construction delays. As a result, true expectations regarding credit losses from Ready Capital were significantly misrepresented, impacting the accurate portrayal of its financial projections, including distributable earnings, dividends, and book value. The situation is further complicated by the fact that following the merger, the stock price of Ready Capital has remained below the initial merger price, indicating potential discrepancies between projected expectations and actual performance. Investors who suffered significant losses are urged to present their information to the law firm to get involved in this critical class action, which aims to seek justice and a possible recovery for impacted shareholders. Robbins Geller, known for its expertise in securities fraud and shareholder litigation, boasts an impressive record in securing substantial financial recoveries for its clients. Having recovered over $2.5 billion for investors in 2024 alone, the firm positions itself as a leader in advocating for the rights of investors. The process for investors to be appointed as lead plaintiff is clearly outlined under the Private Securities Litigation Reform Act of 1995, which allows any investor who held Broadmark common stock on the merger's record date to step forward. This lead plaintiff will represent all other class members and will have the authority to select a law firm for litigation. It is essential to note that an individual’s potential to receive future recovery does not depend on the role of lead plaintiff. The lawsuit represents a crucial action for investors feeling wronged by the recent merger and its implications. Robbins Geller has consistently fought for investors' rights, highlighted by its ranking as a top law firm for securing remarkable financial relief. Should you wish to join this significant legal fight or require more information, potential plaintiffs can contact the attorneys at Robbins Geller or visit their dedicated case page. This class action lawsuit exemplifies the ongoing accountability efforts in the financial markets, ensuring that investors have a voice and the chance for remediation against corporate discrepancies.