Pomerantz Law Firm's Class Action Lawsuit Against Ready Capital Corporation: An Investor's Notice

Investor Alert: Class Action Lawsuit Against Ready Capital Corporation

On March 11, 2025, Pomerantz LLP officially announced the initiation of a class action lawsuit against Ready Capital Corporation, a company traded on the NYSE under the ticker RC. This action has surfaced in the wake of alarming financial disclosures that have raised significant concerns among its investors.

Understanding the Background

In a press release, Pomerantz LLP notified investors that they may have claims due to potential securities fraud and other unethical business practices by Ready Capital’s management. The firm is advising all affected investors, particularly those who faced financial losses, to reach out for assistance. Interested parties are encouraged to connect with Danielle Peyton from Pomerantz Law Firm via email or phone, ensuring they include relevant information such as their mailing address and number of shares purchased.

The lawsuit targets allegations regarding the company’s conduct leading up to substantial financial losses. Investors are particularly concerned about disclosing a net loss of $1.80 per share for the fourth quarter and $2.52 per share for the full year of 2024, a situation that unfolded amid attempts by Ready Capital to stabilize its business via drastic measures.

Recent Developments Impacting Investors

The announcement by Ready Capital of these significant losses triggered an immediate response in the stock market — the company's shares plummeted by 26.84%, reflecting a loss of $1.86 per share to close at $5.07 as of March 3, 2025. The announcement pointed to the company having to reserve fully for non-performing loans within its commercial real estate (CRE) portfolio, a move that suggested serious underlying issues in their financial stability.

According to financial documents, the company emphasized the need to take aggressive actions to maintain their balance sheet. This included a combined sum of $284 million allocated for Current Expected Credit Loss (CECL) and valuation allowances meant to adjust the values of non-performing loans carried on their books. Additionally, Ready Capital reported that their total leverage had increased to 3.8 times, up from 3.3 times in the previous quarter, further indicating potential financial distress.

The Path Forward for Investors

Eligible investors have until May 5, 2025, to request the court appoint them as Lead Plaintiff in this class action suit. This opportunity allows stakeholders to advocate on behalf of the group and seek potential compensation for losses incurred. They can find a copy of the complaint or additional details by visiting the firm's dedicated website at www.pomerantzlaw.com.

Pomerantz LLP, with a celebrated history of representing victims of securities fraud and corporate misconduct, stands as one of the leading firms in this area of law. With a presence in major cities globally, including New York, Los Angeles, and London, the firm has secured numerous landmark recoveries for its clients over the decades.

Investors are urged to remain vigilant regarding updates on this legal action as it progresses. The case exemplifies the critical role of investor awareness and legal recourse in navigating financial risks and uncertainties. For those affected, contacting Pomerantz promptly could prove vital in pursuing any potential claims and receiving guidance through this challenging financial landscape.