SAN DIEGO — The law firm Robbins Geller Rudman & Dowd LLP is calling on stockholders of Broadmark Realty Capital Inc. to take action regarding a class action lawsuit following the merger with Ready Capital Corporation. Shareholders who held Broadmark common stock as of the merger date in May 2023 now have until July 28, 2025, to seek designation as lead plaintiff in the case, titled Grant v. Broadmark Realty Capital and filed in the Western District of Washington.
This lawsuit accuses Broadmark, Ready Capital, and key executives from both companies, as well as an external asset manager for Ready Capital, of violating the Securities Exchange Act of 1934. Shareholders allege that the proxy statement circulated to gain support for the merger contained misleading information, failing to disclose significant financial difficulties affecting Ready Capital’s borrower portfolio due to rising interest rates.
The merger, which was approved by Broadmark shareholders on May 30, 2023, raised concerns among investors. Issues cited in the lawsuit include an oversupply of multifamily properties in markets where Ready Capital operates, limiting the company’s borrowers’ ability to raise rents to offset their debt costs. A notable problem involves a large development project acquired during the merger, which has faced catastrophic setbacks, including extensive cost overruns and delays.
As the stock price of Ready Capital continues to lag well below the agreed merger price, affected investors are urged to consider their potential participation in the class action. The filing outlines that numerous financial projections provided during the merger lacked a solid factual basis, undermining the value of the stock for investors.
Those interested in serving as lead plaintiffs or seeking further information can reach out to attorneys J.C. Sanchez or Jennifer N. Caringal from Robbins Geller. The lead plaintiff in a class action is generally a party with the greatest financial stake who can adequately represent the interests of all affected shareholders.
Robbins Geller is a recognized leader in representing investors involved in securities fraud and shareholder litigation. The firm’s track record includes securing substantial monetary relief for investors, with over $2.5 billion recovered in 2024 alone from securities-related class action cases.
The firm, boasting a network of 200 attorneys across 10 offices, emphasizes its commitment to defending investor rights. Interested parties can learn more about the ongoing litigation and the process of joining the class action by contacting Robbins Geller directly.
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