Resource Capital Corp. Investigation
Are you a Resource Capital Corp. shareholder?

On December 15, 2016, Blau & Malmfeldt announced an investigation of Resource Capital Corp. It appears that Resource Capital Corp.'s directors, officers, and external advisor may have breached fiduciary duties owed to the company and to its shareholders and may have violated securities laws.

Resource Capital Corp.'s financial problems stem in part from a large mezzanine loan that the company acquired in 2007. This mezzanine loan was supported by hotels in Puerto Rico. The loan stopped performing in 2012 but the company failed to write down the value of this asset until 2015.

The management fees that Resource Capital Corp. pays to its external advisor is based upon the value of the company's assets. The company's assets were overstated between 2012 and 2015 due to the failure of the company's directors, officers, and advisor to write down the value of the non-performing mezzanine loan. It appears that the company's directors, officers and advisor thereby wasted company assets by causing it pay management fees on the basis of inflated asset values.

When Resource Capital Corp. wrote down the value of the mezzanine loan in August 2015, its stock fell sharply.

We invite all Resource Capital Corp. shareholders to contact us for a free consultation.

ABOUT BLAU & MALMFELDT

Blau & Malmfeldt is a law firm that represents investors nationwide. We have recovered millions of dollars on behalf of our investor clients. Our clients are located throughout the United States. Blau & Malmfeldt is a generally retained on a contingency fee basis.

Blau & Malmfeldt
566 West Adams Street, Suite 600
Chicago, Illinois 60661
Tel: (312) 443-1600
Fax: (312) 443-1665

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Blau & Malmfeldt
Attorneys at Law

566 West Adams Street, Suite 600
Chicago, Illinois 60661
312.443.1600
312.443.1665 (fax)

Paul Malmfeldt
pmalmfeldt@blau-malmfeldt.com

Les Blau
Blaulaw@gmail.com

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