#United States #San Diego #Class Action #Securities Fraud #Ready Capital

Investors of Ready Capital Have Chance to Join Class Action Lawsuit Amid Major Losses

In an important development for investors who have faced substantial losses, Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit targeting Ready Capital Corporation. This lawsuit, titled Quinn v. Ready Capital Corporation, is officially filed in the Southern District of New York and is open to investors who purchased shares during a specified period. The firm seeks to gather individuals who may have been affected by misleading information released by Ready Capital and its executives regarding the company’s financial stability.

Allegations Against Ready Capital

The core allegations of the lawsuit focus on violations of the Securities Exchange Act of 1934. The plaintiffs argue that Ready Capital, operating as a real estate finance firm, failed to disclose crucial information about its commercial real estate (CRE) portfolio. Despite acknowledging the existence of significant non-performing loans, the company neglected to properly communicate the severity of these financial issues to its investors. This non-disclosure is claimed to represent a breach of trust and transparency that is expected in publicly traded entities.

Key points from the allegations include:

• - Problematic Loans: The company was aware that many non-performing loans were unlikely to be collected but continued to report a misleadingly stable financial outlook.
• - Inaccurate Financial Representation: Ready Capital’s financial disclosures did not accurately reflect the level of reserves needed for its problematic loans. Instead, the firm allegedly took drastic measures belatedly, such as fully reserving for these loans to stabilize its financial position.
• - Stock Value Impact: After announcing a staggering net loss of $1.80 per share for the fourth quarter of 2024, and a full-year loss of $2.52 per share, the company saw its stock price plummet nearly 27%. This dramatic decline serves as a stark indicator of the repercussions faced by investors relying on accurate information for their investment decisions.

Taking Action as a Lead Plaintiff

As of today, investors who believe they may have suffered losses due to these alleged misrepresentations can step forward to serve as lead plaintiffs in the class action suit. The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Ready Capital common stock during the period in question to seek this significant role.

The responsibilities of a lead plaintiff include not only representing the collective interests of the class but also having the authority to choose the legal representation they prefer for the case. Importantly, an investor’s potential to recover from the lawsuit does not hinge on being selected as the lead plaintiff; all parties involved can still benefit from any financial restitution achieved through successful litigation.

How to Get Involved

For investors interested in participating in this class action lawsuit, Robbins Geller provides a straightforward process to register as a lead plaintiff. Interested parties can fill out their information online, or they may contact attorneys J.C. Sanchez or Jennifer N. Caringal directly by phone or email. However, they should act swiftly, as motions for lead plaintiff status must be filed by May 5, 2025.

In the context of potential legal battles pertaining to securities fraud, Robbins Geller Rudman & Dowd LLP stands out as a leading firm in this arena. The firm boasts a history of securing substantial settlements for investors, having recovered $6.6 billion in securities-related class action cases over recent years. Their success underscores the importance of investor representation in the face of corporate misconduct.

Investors must remain vigilant about their rights and should take proactive steps if they believe they have been wronged. Legal action may not only provide individual restitution but can also act as a deterrent against future corporate malfeasance. As the upcoming deadline approaches, affected investors are encouraged to weigh their options carefully and consider mobilizing as part of this class action lawsuit.