Levi & Korsinsky Opens Class Action for Investors Affected by Ready Capital's Alleged Fraud

Class Action Alert for Ready Capital Investors

Levi & Korsinsky, LLP has officially announced a class action lawsuit targeting investors in Ready Capital Corporation, also known as RC, listed on the NYSE. This action relates to alleged securities fraud that impacted its shareholders between November 7, 2024, and March 2, 2025. Those affected by the company’s misrepresentations are encouraged to join before the upcoming deadline on May 5, 2025.

Understanding the Lawsuit

The recent filing claims that significant non-performing loans within Ready Capital's commercial real estate (CRE) portfolio were likely uncollectible, an alarming situation concealed from investors. Specifically, the allegations suggest that the management made misleading statements regarding the financial stability and operational outlook of the company. Key points raised in the complaint include:
1. Non-performing loans were not accurately disclosed, indicating potential serious implications for the company’s financial health.
2. The company failed to reserve against these problematic loans sufficiently, which impacted expected credit loss projections.
3. Consequently, misleading statements regarding Ready Capital's business operations misled investors about their investments.

These elements highlight a pattern of behavior that may have harmed shareholders’ interests. The firm is looking to recover losses for affected investors, positioning itself as a defender of shareholder rights.

Next Steps for Investors

To take action, investors who suffered losses during the relevant time frame must express their interest by the May 5 deadline. This entails asking the court to appoint them as lead plaintiffs in the case. Importantly, to be eligible for potential compensation, one does not need to serve as the lead plaintiff. The process is designed to be straightforward, with the law firm covering any associated legal fees for class members.

The Levi & Korsinsky Advantage

Levi & Korsinsky boasts two decades of legal experience focused on investor protection and securities litigation. The firm has successfully secured hundreds of millions of dollars for affected shareholders and has developed a reputation for handling high-stakes cases. With a dedicated team of over 70 employees, they have been consistently recognized in the Top 50 list for securities litigation firms across the U.S. by ISS Securities Class Action Services.

Potential class members are advised to consider the implications of this lawsuit seriously. It could provide an opportunity to recover some of those losses due to the alleged misconduct by Ready Capital's management.

For more information, or to request participation in the lawsuit, interested individuals should reach out to Levi & Korsinsky. Contact Joseph E. Levi, Esq. via email at [email protected] or call at (212) 363-7500 for additional details.

As this lawsuit progresses, it will be a significant event for shareholders who rely on the integrity of corporate reporting and seek justice against misleading representations. The timelines ahead will determine not just the outcomes for individual investors, but also the broader ramifications for accountability in public companies like Ready Capital.