#United States #New York #Class Action #Pomerantz Law #Broadmark Realty

Class Action Lawsuit Filed Against Broadmark Realty Capital Inc.

On July 17, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against Broadmark Realty Capital Inc. (NYSE: BRMK). This legal action comes in response to significant concerns regarding potential securities fraud and misconduct by the company and some of its key officers and directors.

Investors who incurred losses due to their investments in Broadmark are encouraged to reach out and contact attorney Danielle Peyton at [email protected] or call 646-581-9980. Additionally, the firm provides a toll-free number, 888.4-POMLAW, where interested parties can seek further assistance. Those contacting via email should include their address, phone number, and details regarding the number of shares they purchased.

The class action specifically targets the misleading practices exhibited by Broadmark during the period surrounding a proposed merger. During this time, investors were reportedly not adequately informed about critical issues affecting their investment. Allegations indicate that the proxy statements used to solicit shareholder support contained falsehoods or did not disclose essential financial difficulties faced by borrowers within Ready Capital's portfolio, which was primarily acquired via Broadmark.

Investors were allegedly kept in the dark regarding several troubling indicators:

• - A significant number of borrowers were facing severe financial distress due to rising interest rates which escalated their borrowing costs.
• - An excess supply of multifamily properties in regions consequential to Ready Capital's operations hindered borrowers' capacity to increase rents sufficiently to cover debts.
• - One notably problematic project, a Ritz-Carlton acquisition in Portland, Oregon, faced massive cost overruns, construction delays, and funding shortfalls, adversely affecting approximately $500 million of Ready Capital’s loan portfolio.
• - As a result, there are claims that the estimation of current expected credit losses and reserves by Ready Capital was substantially underestimated, skewing financial projections related to distributable earnings, dividends, and book value.

The law firm states that investors have until July 28, 2025, to petition the court as Lead Plaintiff in this class. A thorough review of the legal complaint can be accessed through the firm's official website at www.pomerantzlaw.com.

Pomerantz LLP, with a legacy spanning over 85 years, is recognized for its expertise in handling corporate, securities, and antitrust litigation. It was founded by the esteemed Abraham L. Pomerantz, a pioneer in the class action field, upholding the rights of those affected by securities fraud and corporate misconduct. The firm has a notable record in obtaining multimillion-dollar settlements on behalf of class members.

For further inquiries or assistance, investors are advised to contact Pomerantz LLP to get involved in this imperative legal action against Broadmark Realty Capital. Investing can be precarious, and knowing one’s rights and avenues for recourse is crucial for safeguarding financial interests.

Contact Information:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980