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Faruqi & Faruqi's Call to Action for Ready Capital Investors

In a recent announcement, Faruqi & Faruqi, LLP, a prominent securities law firm, is reaching out to investors of Ready Capital Corporation, highlighting a critical deadline in a federal securities class action lawsuit. The firm is investigating potential claims against the company, emphasizing that investors who suffered losses exceeding $50,000 between November 7, 2024, and March 2, 2025, should take immediate action.

The lawsuit centres around significant allegations that Ready Capital and its executives made misleading statements regarding the company's financial health. Specifically, the claims suggest that the executives did not adequately disclose the substantial non-performing loans within the company’s commercial real estate (CRE) portfolio. Such omissions have been deemed detrimental, influencing investors' decisions based on possibly inaccurate financial reporting.

On March 3, 2025, Ready Capital revealed its financial results for the fourth quarter and the full year of 2024, which disclosed a dismal net loss of $1.80 per share for the fourth quarter and an annual loss of $2.52 per share. These figures prompted the company to take significant measures to stabilize its balance sheet, including fully reserving for all non-performing loans in its CRE portfolio. This drastic action was marked by a staggering $284 million taken under Current Expected Credit Loss (CECL) and valuation allowances, marking the non-performing loans to their current values. The repercussions of this announcement were immediate, leading to a steep decline in Ready Capital's stock price, which fell by 26.8% to close at $5.07 per share on the same day.

The implications of these findings raise serious concerns about the integrity of Ready Capital's financial disclosures. Investors now face a pressing need to understand their legal rights and the potential for recovery. As Faruqi & Faruqi encourages affected investors to come forward, they are reminded that the deadline to seek the role of lead plaintiff in this class action is May 5, 2025. A court-appointed lead plaintiff is essential, as they will not only have the largest financial interest in the claims but will also be responsible for steering the litigation on behalf of all affected parties.

Faruqi & Faruqi urges anyone with relevant information about Ready Capital's conduct, including whistleblowers and former employees, to reach out. Individuals may contact Josh Wilson, a partner at Faruqi & Faruqi, directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for further guidance.

The firm has a longstanding reputation since its establishment in 1995, having successfully recovered substantial amounts for investors. They emphasize that prior outcomes do not guarantee similar results, but they are committed to advocating for investors' rights vigorously.

As the looming deadline approaches, it is crucial for investors to be proactive. Whether you choose to serve as a lead plaintiff or opt to remain an absent class member, participating could offer a significant opportunity for recovery amid the turmoil facing Ready Capital.

This developing situation encapsulates the often turbulent landscape of stock investments, where transparency and timely disclosures are essential in preserving investor confidence. Faruqi & Faruqi will continue to provide updates on this class action and supports investors during these challenging times.