Broadmark Realty Capital Inc. Investors: Please contact the Portnoy Law Firm to recover your losses; July 28, 2025 Deadline to file Lead Plaintiff Motion

Investors can contact the law firm at no cost to learn more about recovering their losses

LOS ANGELES, June 30, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Broadmark Realty Capital Inc. ("Broadmark" or the "Company") (NYSE: BRMK) common stock as of the record date of the May 2023 merger between Broadmark and Ready Capital Corporation. Broadmark investors have until July 28, 2025 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

CASE ALLEGATIONS: Broadmark Realty Capital Inc. and Ready Capital Corporation are real estate investment trusts (REITs). On May 30, 2023, Broadmark shareholders voted to approve a merger between the two companies, which was finalized on May 31, 2023.

The Broadmark class action lawsuit alleges that the proxy statement used to solicit shareholder approval for the merger contained materially false and/or misleading statements and omitted key facts, including that:

1. A significant portion of borrowers in Ready Capital’s loan portfolio were facing financial distress due to rising interest rates, which substantially increased their borrowing costs;
   
2. An oversupply of multifamily properties in Ready Capital’s core markets limited borrowers’ ability to raise rents sufficiently to offset their growing debt obligations;
   
3. A major development project—specifically, a Ritz-Carlton in Portland, Oregon—acquired through Ready Capital’s purchase of Mosaic Real Estate Credit entities (Mosaic Real Estate Credit, LLC; Mosaic Real Estate Credit TE, LLC; and MREC International Incentive Split, LP) had been plagued by severe setbacks, including cost overruns, construction delays, and funding shortfalls. This project represented approximately $500 million of Ready Capital’s acquired loan portfolio;
   
4. As a result of these issues, Ready Capital’s Current Expected Credit Loss (CECL) reserves and projected credit losses were significantly understated; and
   
5. Accordingly, Ready Capital’s financial projections—including estimates of Distributable Earnings per share, dividends per share, and book value per share—lacked a reasonable basis when issued.
   

The complaint notes that the price of Ready Capital stock remained significantly below the merger valuation at the time the lawsuit was filed.

The plaintiff is represented by Robbins Geller Rudman & Dowd LLP, a firm with extensive experience in prosecuting investor class actions involving financial fraud.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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