Faruqi & Faruqi, LLP Investigates Possible Securities Fraud Claims Against Ready Capital Corporation
In a significant development for investors, Faruqi & Faruqi, LLP, a prominent national securities law firm, is actively examining possible claims against Ready Capital Corporation (NYSE: RC). Recent financial reports reveal troubling statistics, including a net loss of $1.80 per share for the fourth quarter of 2024. This alarming financial disclosure has raised eyebrows among investors who witnessed their stakes plummet. The firm is encouraging those who experienced individual losses exceeding $50,000 during the period from November 7, 2024, to March 2, 2025, to reach out to them for consultation about potential legal actions.
The plaintiffs in this context may come forward as lead representatives in a federal class action lawsuit filed against Ready Capital. The case alleges serious infractions of federal securities laws, particularly concerning misleading statements made by the company and its executives. Key accusations include the failure to adequately disclose the issue of non-performing loans within their Commercial Real Estate (CRE) portfolio, which were reported as unlikely to be collectible. Furthermore, it is claimed that the company did not accurately depict these financial liabilities in their statements, which in turn misled investors on the company's overall financial health.
Critically, on March 3, 2025, Ready Capital revealed the full extent of their financial difficulties. Through their disclosures, they acknowledged the necessity to fully reserve for their non-performing loans to 'stabilize' their financial standing. This came as a shock to many investors who had been led to believe the company's future perceived that operations were on solid ground. As a result of the announcement, Ready Capital's stock suffered from a drastic drop, decreasing by 26.8% to $5.07 per share.
The court is responsible for appointing a lead plaintiff, an investor whose financial stake in the case is substantial and who is representative of the class member's claims. Investors considering whether to take action against Ready Capital have the prerogative to either move the court to serve in that role or remain on the sidelines as part of the class.
Faruqi & Faruqi, LLP not only urges investors affected by the company's missteps to contact their office for guidance, but they also welcome any information related to the case, including insights from whistleblowers, former employees, and shareholders. The firm aims to gather a comprehensive overview of Ready Capital's operations to present a robust case in court. This investigation reflects a broader commitment by the firm to stand up for investors and to hold companies accountable for their actions.
Interested parties can visit www.faruqilaw.com/RC for information regarding the class action or to learn more about their rights as investors. The deadline for filing as the lead plaintiff is May 5, 2025, making swift action crucial for those impacted.
Ready Capital's situation serves as a sobering reminder of the paramount importance of transparency and integrity in corporate communications. As the market continues to respond to these unfolding events, investors around the country are left grappling with not just questions of finance but also trust in public companies. As Faruqi & Faruqi progresses in their investigative efforts, the outcome of this case may set a significant precedent regarding corporate accountability.
The plaintiffs in this context may come forward as lead representatives in a federal class action lawsuit filed against Ready Capital. The case alleges serious infractions of federal securities laws, particularly concerning misleading statements made by the company and its executives. Key accusations include the failure to adequately disclose the issue of non-performing loans within their Commercial Real Estate (CRE) portfolio, which were reported as unlikely to be collectible. Furthermore, it is claimed that the company did not accurately depict these financial liabilities in their statements, which in turn misled investors on the company's overall financial health.
Critically, on March 3, 2025, Ready Capital revealed the full extent of their financial difficulties. Through their disclosures, they acknowledged the necessity to fully reserve for their non-performing loans to 'stabilize' their financial standing. This came as a shock to many investors who had been led to believe the company's future perceived that operations were on solid ground. As a result of the announcement, Ready Capital's stock suffered from a drastic drop, decreasing by 26.8% to $5.07 per share.
The court is responsible for appointing a lead plaintiff, an investor whose financial stake in the case is substantial and who is representative of the class member's claims. Investors considering whether to take action against Ready Capital have the prerogative to either move the court to serve in that role or remain on the sidelines as part of the class.
Faruqi & Faruqi, LLP not only urges investors affected by the company's missteps to contact their office for guidance, but they also welcome any information related to the case, including insights from whistleblowers, former employees, and shareholders. The firm aims to gather a comprehensive overview of Ready Capital's operations to present a robust case in court. This investigation reflects a broader commitment by the firm to stand up for investors and to hold companies accountable for their actions.
Interested parties can visit www.faruqilaw.com/RC for information regarding the class action or to learn more about their rights as investors. The deadline for filing as the lead plaintiff is May 5, 2025, making swift action crucial for those impacted.
Ready Capital's situation serves as a sobering reminder of the paramount importance of transparency and integrity in corporate communications. As the market continues to respond to these unfolding events, investors around the country are left grappling with not just questions of finance but also trust in public companies. As Faruqi & Faruqi progresses in their investigative efforts, the outcome of this case may set a significant precedent regarding corporate accountability.
Topics Financial Services & Investing）
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