Investors Target Ready Capital Corporation in Class Action Lawsuit for Recovery of Losses

Class Action Filed Against Ready Capital Corporation

On March 28, 2025, a significant development for investors in Ready Capital Corporation (NYSE: RC) emerged as Levi & Korsinsky, LLP announced a class action securities lawsuit aimed at recovering losses incurred by shareholders. The lawsuit centers on alleged securities fraud that reportedly transpired between November 7, 2024, and March 2, 2025. Investors seeking to understand their rights can find additional information and initiate contact with the firm through their website.

Understanding the Lawsuit

The core intent of this legal action is to seek recovery for shareholders who suffered during the specified timeframe. The filed complaint outlines several critical allegations against Ready Capital's management:

1. Non-Performing Loans: It is claimed that a substantial portion of non-performing loans in their commercial real estate (CRE) portfolio were unlikely to be collected, a fact that was reportedly obscured.
2. Reserve for Problem Loans: The company allegedly aimed to stabilize its CRE portfolio by fully reserving these problematic loans, but this strategy has come under scrutiny as its implications were not accurately represented in the company's financial reporting.
3. Misleading Financial Results: The allegations further suggest that these discrepancies resulted in a misrepresentation of Ready Capital's financial health, painting a distorted picture of its business operations and future prospects.

The crux of the argument made by the plaintiffs revolves around the claim that the defendants' public statements concerning the company's operations lacked factual accuracy and failed to reflect the company's actual standing.

Next Steps for Affected Investors

Investors who feel they have been adversely affected by these practices have until May 5, 2025, to petition the Court to consider them for the role of lead plaintiff in the class action. However, it's important to note that participation in the recovery does not necessitate an investor acting as a lead plaintiff; affected parties can still benefit.

No Financial Burden to Participate

For individuals who are part of this class action, the process promises a path to possible compensation without any out-of-pocket expenses or fees. The firm emphasizes that participation carries no costs or obligations, which may be a significant relief for those who have experienced losses.

Why Choose Levi & Korsinsky?

Levi & Korsinsky stands out in this field with a two-decade track record of securing hundreds of millions of dollars for investors. With a dedicated team comprising over 70 professionals, the firm specializes in complex securities litigation, making it a formidable advocate for shareholder rights. Additionally, for several consecutive years, Levi & Korsinsky has ranked among the top securities litigation firms in the United States, as noted in ISS Securities Class Action Services' Top 50 Report.

How to Contact the Firm

For more information or to determine eligibility, interested parties can reach out to Levi & Korsinsky, LLP, located at 33 Whitehall Street, 17th Floor, New York, NY 10004. Inquiries can be directed to Joseph E. Levi, Esq. or Ed Korsinsky, Esq. via telephone at (212) 363-7500 or by email at [email protected].

This case serves as a critical reminder for investors about the importance of transparency and accountability in financial reporting, reinforcing the ongoing dialogues surrounding corporate governance and investors' rights in the ever-evolving landscape of the financial markets.