Opportunity for Investors in Ready Capital to Lead Class Action Lawsuit After Significant Losses

Overview of the Situation

In recent developments, investors of Ready Capital Corporation (NYSE: RC) who have endured significant financial losses are being called to take action. The law firm Robbins Geller Rudman & Dowd LLP has announced an opportunity for these affected investors to lead a class action lawsuit against the company. This action comes on the heels of troubling financial disclosures from Ready Capital, which may have negatively impacted stock prices and caused substantial losses for shareholders.

Class Period and Deadlines

Investors who purchased or acquired common stock of Ready Capital between November 7, 2024, and March 2, 2025, are encouraged to seek appointment as lead plaintiff in the lawsuit by May 5, 2025. The proposed class action, identified as Quinn v. Ready Capital Corporation, No. 25-cv-01883 (S.D.N.Y), raises serious allegations against the company and several of its executives under the Securities Exchange Act of 1934.

Legal Allegations

The class action lawsuit scrutinizes the plaintiffs' claims that Ready Capital made misleading statements and failed to disclose crucial information regarding its financial health, particularly relating to problematic loans in its commercial real estate (CRE) portfolio. Specific allegations include:

1. Non-Performing Loans: The lawsuit asserts that a significant amount of non-performing loans within Ready Capital's CRE portfolio were unlikely to be collected. This information was not disclosed to investors, leading to misguided assumptions about the company's stability.
2. Stabilization Actions: It is claimed that Ready Capital executives had to take drastic actions to stabilize the company's balance sheet, which included fully reserving these problematic loans. However, this was not reflected accurately in the company's expected credit loss or in its valuation allowances.
3. Financial Reporting: A significant hit to Ready Capital's financial results was noted, with the company reporting a fourth-quarter net loss of $1.80 per share and a $2.52 loss for the full year of 2024. These figures prompted the stock price of Ready Capital to plummet nearly 27% on March 3, 2025, triggering alarm among investors.

The Role of the Lead Plaintiff

The Private Securities Litigation Reform Act of 1995 allows investors who suffered losses during the specified class period to apply for the lead plaintiff position in the lawsuit. The lead plaintiff is typically an individual with the most substantial financial interest in the case and is responsible for guiding the lawsuit on behalf of other class members. Furthermore, the lead plaintiff has the authority to select the legal representation for the class action.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller Rudman & Dowd LLP is a premier law firm recognized for securing large settlements for investors embroiled in securities fraud cases. Over the past decade, the firm has earned a reputation as a leader in this domain, recovering billions for their clients. Their expertise in managing complex class action lawsuits places them in a strong position to advocate for affected investors in the Ready Capital case.

How to Get Involved

Investors who believe they have grounds to participate in the class action should act quickly. Interested parties can sign up through the law firm’s dedicated webpage or reach out directly to attorneys specializing in investor claims. It is essential for investors to understand that participation as a lead plaintiff is not a prerequisite for sharing in any potential recovery incurred from the lawsuit. Every investor holds a stake in the pursuit of justice and recovery of losses.

For additional information or to initiate the process, investors can contact J.C. Sanchez or Jennifer N. Caringal at Robbins Geller through their hotline or email.

Conclusion

As the deadline approaches, affected investors have a pivotal opportunity to assert their rights in a class action lawsuit against Ready Capital. This case highlights the importance of transparency in financial reporting and the need for accountability when corporations fail to protect their investors. Taking action now could be essential for those who have suffered due to the company’s alleged misstatements and omissions.