According to the Complaint, Anworth Mortgage Asset Corporation is a specialty finance mortgage company organized to qualify as a real estate investment trust (“REIT”).

On December 8, 2020, Anworth and Ready Capital Corporation issued a joint press release announcing the Proposed Transaction, pursuant to which Anworth will be acquired by Ready Capital through Ready Capital’s subsidiary RC Merger Subsidiary. Under the terms of the Merger Agreement, Ready Capital will acquire all of the outstanding shares of Anworth's common stock, in exchange for 0.1688 shares of Ready Capital common stock and $0.61 in cash for each share of Anworth common stock they own.

On January 4, 2021, Ready Capital filed a Form S-4 Registration Statement with the SEC. The Complaint alleges that the Registration Statement, which recommends that Anworth stockholders vote in favor of the Proposed Transaction, omits or misrepresents material information concerning, among other things: (a) the sales process and in particular certain conflicts of interest for management; (b) the financial projections for Anworth, provided by Anworth to the Company's financial advisors; and (c) the data and inputs underlying the financial valuation analyses, if any, that purport to support the fairness opinions created by the Company's financial advisors and provided to the Company and the Board.

This case was voluntarily dismissed on March 12, 2021.