Class Action Against Broadmark Realty Capital and Ready Capital
On June 23, 2025, Robbins Geller Rudman & Dowd LLP announced a class action lawsuit against Broadmark Realty Capital Inc. (NYSE: BRMK) and Ready Capital Corporation (NYSE: RC) on behalf of investors who suffered significant financial losses. This lawsuit arises following the merger of Broadmark and Ready Capital in May 2023, which has been marred with allegations of misleading information provided to shareholders.
Background of the Case
The merger between Broadmark and Ready Capital was approved on May 30, 2023, with the formal closing occurring the following day. According to the allegations in the class action lawsuit, the proxy statement circulated to solicit shareholder support contained numerous false or misleading statements. These misrepresentations may have significantly influenced shareholders' willingness to approve the merger.
Key Allegations
The lawsuit asserts that key issues were not disclosed to the investors, including the following:
1. Many borrowers within Ready Capital’s originated portfolio were under considerable financial stress due to rising interest rates, which led to increased borrowing costs.
2. An oversupply of multifamily properties in Ready Capital’s operational markets severely restricted borrowers' ability to adjust rent prices to cover their escalating debt costs.
3. A major project acquired during Ready Capital's acquisition of Mosaic Real Estate Credit faced significant delays and cost overruns, undermining its financial viability.
4. As a consequence, Ready Capital's projections regarding reserves for expected credit losses and future earnings were materially understated.
5. Ultimately, the financial forecasts provided during the merger lacked factual basis, misleading shareholders about the true nature of their investment.
Since the filing of the lawsuit, Ready Capital’s stock price has remained notably below the price at which the merger was executed, signaling potential fallout from the allegations.
The Lead Plaintiff Process
The Private Securities Litigation Reform Act of 1995 permits investors who were holders of Broadmark common stock at the time of the merger to seek appointment as lead plaintiffs in the ongoing class action. The lead plaintiff is generally the one with the most significant financial stake in the case and typical of the class as a whole. This individual will represent all other class members in directing the lawsuit.
Investors interested in becoming lead plaintiff must act promptly, as the deadline to apply is set for July 28, 2025. Those who wish to contribute to this case can either submit a request through Robbins Geller’s official site or contact attorneys J.C. Sanchez or Jennifer N. Caringal directly at their office in San Diego.
About Robbins Geller Rudman & Dowd LLP
Robbins Geller is a prestigious law firm renowned for its representation of investors in securities fraud and shareholder litigation. It has been ranked first in securing monetary relief for investors by ISS Securities Class Action Services. In 2024 alone, the firm recovered over $2.5 billion for investors, emphasizing its role as a leading advocate in securities litigation with a substantial history of high-profile recoveries. This extensive experience positions Robbins Geller as a key player in addressing the alleged misconduct associated with Broadmark Realty and Ready Capital, providing a critical pathway for affected investors to seek justice and reparation.
Conclusion
As this lawsuit progresses, it highlights the significant role that transparency and accurate disclosure play in corporate mergers and acquisitions. Investors who believe they have been misled during the Broadmark and Ready Capital merger are encouraged to engage with Robbins Geller to explore their options for redress. For more details about the lawsuit, prospective lead plaintiffs can visit
Robbins Geller's official website.