Investor Alert: Ready Capital Corporation Faces Class Action Lawsuit for Securities Violations
In a significant development for investors of Ready Capital Corporation, a class action lawsuit has been initiated under the title Quinn v. Ready Capital Corporation, filed in the United States District Court for the Southern District of New York. The lawsuit, spearheaded by Robbins Geller Rudman & Dowd LLP, targets both the company and its executives over alleged violations of the Securities Exchange Act of 1934.
Investors who have experienced notable financial losses due to their investments in Ready Capital are encouraged to step up and potentially assume the role of lead plaintiff in this class action. To facilitate this process, details can be submitted through a dedicated link provided by the firm. However, it's crucial for interested parties to act quickly, as the deadline for these motions is today, May 5, 2025.
The essence of the allegations is deeply rooted in the company's management of non-performing loans in its commercial real estate portfolio. The lawsuit contends that throughout the relevant class period, the defendants purportedly made false statements and withheld critical information, including that significant percentages of non-performing loans were unlikely to be collected. In an effort to 'stabilize' the company’s financial standing, it is claimed they would take full reserves for these troubled loans, but did not disclose the true extent of the losses or their implications for the company's financial reports.
In a particularly damaging turn of events, Ready Capital reported a staggering net loss of $1.80 per share for the fourth quarter of 2024, alongside a full-year loss of $2.52 per share. During this announcement, the company acknowledged that it had undertaken 'decisive actions to stabilize' its balance sheet, which included setting aside a hefty $284 million in expected credit losses and valuation allowances—a move that effectively marked these non-performing loans to their current value. This disclosure sparked a drastic decline in the stock price, plummeting nearly 27% in a single day, which has intensified scrutiny and prompted this legal action.
Under the Private Securities Litigation Reform Act of 1995, investors who acquired Ready Capital common stock during the specified class period have the right to nominate themselves to become the lead plaintiff in this lawsuit. The lead plaintiff is typically the individual with the most substantial financial interest in the case who can adequately represent the interests of the entire class. Their role includes overseeing the proceedings and having the authority to select a law firm to manage the litigation.
It's important to highlight that participating as a lead plaintiff does not alter an individual's entitlement to receive any potential future recovery—that right is preserved for all class members regardless of their active roles in the lawsuit.
Robbins Geller Rudman & Dowd LLP stands as a prominent legal force in the fight against securities fraud, holding the distinction of securing meaningful financial relief for investors consistently over the years. Ranked first in the ISS Securities Class Action Services, the firm has successfully recouped $6.6 billion in securities-related class action outcomes, thereby solidifying its reputation within the legal community. With a robust team of 200 attorneys across 10 offices, Robbins Geller is not only among the largest plaintiffs' firms globally but also boasts several historic victories in the realm of securities litigation.
For those seeking more information about the class action lawsuit or their eligibility, Robbins Geller offers resources via their informative website, underscoring their commitment to investor protection and legal advocacy.
This is an urgent call to action for those affected by Ready Capital's alleged misconduct. Investors are encouraged to gather the necessary information and consider joining this significant legal battle to reclaim their losses and seek accountability from the company's executives.
Investors who have experienced notable financial losses due to their investments in Ready Capital are encouraged to step up and potentially assume the role of lead plaintiff in this class action. To facilitate this process, details can be submitted through a dedicated link provided by the firm. However, it's crucial for interested parties to act quickly, as the deadline for these motions is today, May 5, 2025.
Case Background
The essence of the allegations is deeply rooted in the company's management of non-performing loans in its commercial real estate portfolio. The lawsuit contends that throughout the relevant class period, the defendants purportedly made false statements and withheld critical information, including that significant percentages of non-performing loans were unlikely to be collected. In an effort to 'stabilize' the company’s financial standing, it is claimed they would take full reserves for these troubled loans, but did not disclose the true extent of the losses or their implications for the company's financial reports.
In a particularly damaging turn of events, Ready Capital reported a staggering net loss of $1.80 per share for the fourth quarter of 2024, alongside a full-year loss of $2.52 per share. During this announcement, the company acknowledged that it had undertaken 'decisive actions to stabilize' its balance sheet, which included setting aside a hefty $284 million in expected credit losses and valuation allowances—a move that effectively marked these non-performing loans to their current value. This disclosure sparked a drastic decline in the stock price, plummeting nearly 27% in a single day, which has intensified scrutiny and prompted this legal action.
Lead Plaintiff Criteria
Under the Private Securities Litigation Reform Act of 1995, investors who acquired Ready Capital common stock during the specified class period have the right to nominate themselves to become the lead plaintiff in this lawsuit. The lead plaintiff is typically the individual with the most substantial financial interest in the case who can adequately represent the interests of the entire class. Their role includes overseeing the proceedings and having the authority to select a law firm to manage the litigation.
It's important to highlight that participating as a lead plaintiff does not alter an individual's entitlement to receive any potential future recovery—that right is preserved for all class members regardless of their active roles in the lawsuit.
About Robbins Geller Rudman & Dowd LLP
Robbins Geller Rudman & Dowd LLP stands as a prominent legal force in the fight against securities fraud, holding the distinction of securing meaningful financial relief for investors consistently over the years. Ranked first in the ISS Securities Class Action Services, the firm has successfully recouped $6.6 billion in securities-related class action outcomes, thereby solidifying its reputation within the legal community. With a robust team of 200 attorneys across 10 offices, Robbins Geller is not only among the largest plaintiffs' firms globally but also boasts several historic victories in the realm of securities litigation.
For those seeking more information about the class action lawsuit or their eligibility, Robbins Geller offers resources via their informative website, underscoring their commitment to investor protection and legal advocacy.
This is an urgent call to action for those affected by Ready Capital's alleged misconduct. Investors are encouraged to gather the necessary information and consider joining this significant legal battle to reclaim their losses and seek accountability from the company's executives.
Topics Financial Services & Investing）
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