Faruqi & Faruqi, LLP's Investigation into Ready Capital Investors' Losses

Faruqi & Faruqi, LLP Investigates Claims on Behalf of Ready Capital Investors

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced its investigation into potential claims regarding Ready Capital Corporation (NYSE: RC). This inquiry comes in light of significant recent losses that investors may have suffered due to actions taken by the company and its executives. The law firm is reaching out to all investors who acquired securities in Ready Capital between November 7, 2024, and March 2, 2025, to discuss their legal options.

The firm is particularly interested in hearing from individuals who have experienced financial losses during this period. According to the available information, on March 3, 2025, Ready Capital reported a disappointing fourth quarter and full-year 2024 financial result, revealing a net loss of $1.80 per share for the fourth quarter and $2.52 per share for the entire year. This announcement, which came before market opening hours, was exacerbated by the revelation that the company took substantial steps to stabilize its balance sheet, requiring them to reserve fully for all nonperforming loans in their commercial real estate (CRE) portfolio.

These developments included a significant adjustment of $284 million in combined Current Expected Credit Loss (CECL) and valuation allowances to reflect the actual value of the nonperforming loans. The firm's public disclosure regarding this financial instability directly affected investors, with stock prices plummeting by 26.8%, closing at $5.07 per share on March 3, 2025. The context of these losses raises serious concerns regarding potential violations of federal securities laws, specifically relating to misleading statements and failure to disclose critical information about the company's financial health.

Faruqi & Faruqi, LLP encourages affected investors to consider taking action as the deadline for seeking a lead plaintiff role in a federal securities class action against Ready Capital is May 5, 2025. The lead plaintiff serves as the representative for the class and guides the litigation on behalf of all class members. Those interested should consult legal counsel to explore their options or reach directly out to the firm.

Furthermore, the firm is open to receiving information from anyone possessing insights regarding Ready Capital's operations, including whistleblowers, former employees, shareholders, or other concerned individuals. Sharing such information may significantly contribute to the ongoing investigation into the company's practices.

To learn more about the Ready Capital investigation and the class action specifics, potential claimants can visit the Faruqi & Faruqi website or contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Regular updates will be shared across various platforms including LinkedIn and Facebook to ensure interested parties are informed as the situation develops.

The legal landscape can be complex, especially in matters concerning shareholder rights and securities law. Faruqi & Faruqi stands ready to assist those who find themselves navigating the repercussions of recent events surrounding Ready Capital. As the case unfolds, it will be crucial for investors to stay informed and prepared to act within the legal deadlines provided.