Class Action Lawsuit Filed Against Ready Capital Corporation Amidst Investor Losses and Securities Concerns
In a significant move for investors, Pomerantz LLP has officially initiated a class action lawsuit against Ready Capital Corporation, commonly referred to as Ready. This action comes amid notable concerns regarding the company's financial disclosures and overall business practices, particularly concerning allegations of securities fraud. Investors who believe they have incurred financial losses are being encouraged to join the class action, which aims to address these serious accusations against the company and its management team.
The class action claims that Ready Capital and certain individuals within its management may have engaged in unlawful activities connected to the company's securities. Specifically, the lawsuit raises questions about the accuracy and transparency of the financial information provided by the company and its potential misrepresentation to investors. Investors who acquired Ready's securities during the relevant period can take action before deadlines loom, with the date set for May 5, 2025, for those wishing to be appointed as Lead Plaintiff in the case.
The lawsuit follows a troubling announcement made by Ready Capital on March 3, 2025, detailing the company's financial performance for the fourth quarter and full year of 2024. The disclosed figures were alarming, with a reported fourth quarter net loss of $1.80 per share, compounded by a full year loss totaling $2.52 per share. The company also indicated that it had to take drastic measures to stabilize its financial standing by fully reserving for non-performing loans in its commercial real estate (CRE) portfolio. This decision was supported by significant provisions totaling $284 million, which were categorized under Current Expected Credit Loss (CECL) and valuation allowances, aimed at accurately reflecting the diminished value of these loans.
The news was not well-received in the market, as Ready's stock experienced a sharp drop, plummeting by $1.86 per share, equivalent to a 26.84% decline, ultimately closing at $5.07 per share on the same day.
Pomerantz LLP is widely regarded as a leader in the field of securities class litigation, with a history spanning over 85 years. The firm's founder, Abraham L. Pomerantz, is remembered for his pioneering role in establishing precedents in securities class actions. With offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, the firm is dedicated to advocating for victims of corporate misconduct and securities fraud. Its track record includes recovering substantial damages on behalf of involved investors in numerous high-profile class actions.
For investors who believe they have faced losses associated with Ready Capital, participation in the class action can be initiated by contacting Danielle Peyton at Pomerantz LLP. Interested parties are advised to provide their contact details, including mailing address and number of shares involved, when reaching out.
As the lawsuit progresses, investors will be looking for clarity on the claims and how they could affect their investments. The actions taken by Pomerantz LLP emphasize the importance of accountability in financial markets and serve as a reminder to investors of their rights and the avenues available for redressing grievances against publicly traded firms. For further updates and information about the ongoing lawsuit against Ready Capital Corporation, stakeholders are encouraged to keep an eye on announcements from Pomerantz LLP.
Details of the Lawsuit
The class action claims that Ready Capital and certain individuals within its management may have engaged in unlawful activities connected to the company's securities. Specifically, the lawsuit raises questions about the accuracy and transparency of the financial information provided by the company and its potential misrepresentation to investors. Investors who acquired Ready's securities during the relevant period can take action before deadlines loom, with the date set for May 5, 2025, for those wishing to be appointed as Lead Plaintiff in the case.
Recent Financial Struggles
The lawsuit follows a troubling announcement made by Ready Capital on March 3, 2025, detailing the company's financial performance for the fourth quarter and full year of 2024. The disclosed figures were alarming, with a reported fourth quarter net loss of $1.80 per share, compounded by a full year loss totaling $2.52 per share. The company also indicated that it had to take drastic measures to stabilize its financial standing by fully reserving for non-performing loans in its commercial real estate (CRE) portfolio. This decision was supported by significant provisions totaling $284 million, which were categorized under Current Expected Credit Loss (CECL) and valuation allowances, aimed at accurately reflecting the diminished value of these loans.
The news was not well-received in the market, as Ready's stock experienced a sharp drop, plummeting by $1.86 per share, equivalent to a 26.84% decline, ultimately closing at $5.07 per share on the same day.
Role of Pomerantz LLP
Pomerantz LLP is widely regarded as a leader in the field of securities class litigation, with a history spanning over 85 years. The firm's founder, Abraham L. Pomerantz, is remembered for his pioneering role in establishing precedents in securities class actions. With offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, the firm is dedicated to advocating for victims of corporate misconduct and securities fraud. Its track record includes recovering substantial damages on behalf of involved investors in numerous high-profile class actions.
How to Join the Class Action
For investors who believe they have faced losses associated with Ready Capital, participation in the class action can be initiated by contacting Danielle Peyton at Pomerantz LLP. Interested parties are advised to provide their contact details, including mailing address and number of shares involved, when reaching out.
Conclusion
As the lawsuit progresses, investors will be looking for clarity on the claims and how they could affect their investments. The actions taken by Pomerantz LLP emphasize the importance of accountability in financial markets and serve as a reminder to investors of their rights and the avenues available for redressing grievances against publicly traded firms. For further updates and information about the ongoing lawsuit against Ready Capital Corporation, stakeholders are encouraged to keep an eye on announcements from Pomerantz LLP.
Topics Financial Services & Investing）
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