Investors of Ready Capital Corporation Can Take Legal Action After Securities Fraud Claims

Rosen Law Firm, a prominent legal advocate for investor rights, has issued a timely reminder to individuals who purchased common stock of Ready Capital Corporation (NYSEL: RC) during the designated class period from November 7, 2024, to March 2, 2025. This announcement comes in light of a potential lawsuit focusing on allegations of securities fraud that may have significant implications for affected shareholders.

Class Action Overview

During the stated class period, shareholders of Ready Capital Corporation have the opportunity to join a class action lawsuit that has already been filed. This action is anchored in claims that the company made several misleading statements and failed to disclose critical information regarding its financial health, particularly its portfolio of commercial real estate (CRE) loans.

Shareholders interested in participating in the lawsuit must be prepared to act swiftly, as the deadline to become a lead plaintiff is set for May 5, 2025. A lead plaintiff plays a crucial role in representing the interests of all shareholders involved in the case, guiding the lawsuit and participating in its direction.

Details of the Allegations

The heart of the allegations revolves around significant issues within Ready Capital’s CRE portfolio. Specifically, the lawsuit claims that the company:

1. Failed to Reveal Non-Performing Loans: The company allegedly did not disclose that several substantial loans within its portfolio were performing poorly and were unlikely to generate recoverable funds.
2. Misleading Reserves: It is also alleged that Ready Capital took actions to reserve for these troubled loans without properly reflecting the associated risks in their financial statements.
3. False Statements: As a result of these oversights, the company’s public assertions about its business stability and prospects were reportedly grossly misleading and lacked a reasonable foundation.

These issues evoke concerns about how such mismanagement could lead to significant financial repercussions for investors, prompting the need for legal recourse to recover potential losses.

How to Get Involved

Investors who purchased Ready Capital securities during the class period and wish to explore their legal options can submit their information through the Rosen Law Firm's dedicated online platform. They can also contact Phillip Kim, Esq. via phone or email for detailed guidance on taking part in the lawsuit. Importantly, participating in the class action does not require upfront payment of legal fees—case handling operates on a contingency fee basis, meaning costs are only incurred based on successful recoveries.

Trust the Right Legal Experts

The Rosen Law Firm encourages investors to select legal representation wisely, highlighting their proven expertise in securities class actions. With a notable record of settlements, including securing over $438 million for investors in 2019 alone, the firm emphasizes the importance of having qualified counsel with a successful track record.

It is critical for investors to be informed and proactive during this period. The potential outcomes of this lawsuit could set a precedent for future securities fraud cases, highlighting the significance of transparency and accountability in corporate communications.

Conclusion

As the legal landscape continues to evolve, affected shareholders of Ready Capital Corporation must be vigilant about their rights and avenues for recovery. Engaging with experienced legal representation is crucial for navigating this complex process. This case serves as a reminder of the importance of accurate financial disclosures and the protection of investor interests in the marketplace.