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

Pomerantz Law Firm's Class Action Against Broadmark Realty Capital

In a significant development for investors in Broadmark Realty Capital Inc. (NYSE: BRMK),
Pomerantz LLP has announced the initiation of a class action lawsuit concerning potential securities fraud. This case raises critical questions about the business practices of Broadmark and its leadership.

Overview of the Lawsuit

The lawsuit is primarily concerned with allegations that Broadmark and certain officers/directors engaged in misconduct related to their securities. Investors who have suffered losses are being urged to participate in this legal action, which seeks accountability for the alleged fraudulent activities. Those who purchased Broadmark securities during the class period are particularly advised to act quickly as the deadline for appointing a Lead Plaintiff is looming.

Who Should Get Involved?

Investors with stakes in Broadmark Realty Capital are encouraged to reach out to Pomerantz LLP to register their claims. Danielle Peyton can be contacted via email or phone, with information on past purchases requested to facilitate the process. The firm intends to gather all affected shareholders to form a robust class representing the interests of the investors.

Key Allegations

The class action complaint highlights multiple concerning assertions, including:
1. Misleading Proxy Statements: The proxy statements prepared for soliciting shareholder support for a merger allegedly contained false or misleading information.
2. Financial Distress of Borrowers: A significant number of borrowers under Ready Capital's portfolio were reportedly in financial distress, attributed to rising interest rates that exacerbated their borrowing challenges.
3. Oversupply Issues: The complaint points out that an oversupply of multifamily properties in the markets impacted by Ready Capital limited the ability of these borrowers to raise rents sufficiently to manage their increasing debt loads.
4. Catastrophic Project Setbacks: One of the major projects acquired in the merger, a Ritz-Carlton hotel in Portland, suffered from severe delays and cost overruns, affecting the company's overall financial health.
5. Financial Projections Misrepresentation: As a result of these issues, the lawsuit claims that Broadmark's financial predictions about earnings and dividends were without proper basis and misled investors.

Importance of Timely Action

With a deadline of July 28, 2025, for investors to file their involvement, it is critical for those impacted to act quickly. Joining the class action could provide an avenue for potential restitution for the losses incurred due to the alleged misdeeds of Broadmark’s management.

Pomerantz Law Firm's Legacy

Pomerantz LLP, headquartered in New York with offices in major global cities, has carved out a reputation as a leading firm in corporate and securities litigation. Founded over 85 years ago, it has a storied history of defending the rights of investors, fighting against securities fraud, and seeking justice for those affected by corporate mismanagement.

The firm’s track record of securing multi-million dollar settlements and judgments speaks to its commitment and expertise in this vital area of law, reinforcing the importance of protecting investors' interests in the marketplace.

For those seeking more information about the class action or wishing to join, further details can be obtained from Pomerantz Law Firm’s official site. They are making every effort to ensure that investors know their rights and the potential remedies available to them.

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As the investigation unfolds, investors are advised to stay informed and consider their options carefully as they navigate the complexities of this significant legal battle.