#USA #New York #Class Action #Securities Fraud #Ready Capital

Investors Urged to Join Class Action Against Ready Capital Corporation

Ready Capital Corporation, a publicly traded company on the New York Stock Exchange (NYSE: RC), is facing serious allegations of securities fraud that have led to a class action lawsuit initiated by the law firm Levi & Korsinsky, LLP. This legal action specifically seeks to represent shareholders who have suffered losses due to the company's practices between November 7, 2024, and March 2, 2025.

Allegations of Wrongdoing

The lawsuit centers on accusations that Ready Capital knowingly misled investors regarding the quality of its commercial real estate (CRE) loan portfolio. According to the filed complaint, critical false statements were made by the company regarding significant non-performing loans. The allegations suggest that Ready Capital failed to disclose that these loans were unlikely to be collectible and did not accurately reserve for these problematic assets, leading to a material distortion of the company’s financial health.

In particular, the complaint makes five key assertions:
1. Misrepresentation of Loan Collectibility: Ready Capital allegedly did not disclose that a substantial portion of its loans were non-performing and unlikely to be collected.
2. Inadequate Reserves for Problem Loans: The company purportedly did not fully reserve for these loans, impacting the stability of its portfolio.
3. Distorted Financial Reporting: This lack of transparency meant that the company's reported credit loss expectations were significantly misleading.
4. Negative Impact on Financial Results: As a consequence of these actions, Ready Capital's financial results were adversely affected, misleading investors about the overall health of the company.
5. False Promises about Business Operations: The company made overly optimistic statements about its operations and future prospects without a reasonable basis, further misleading investors.

Call to Action for Affected Investors

Investors who incurred losses during the specified period are encouraged to take action. According to the terms of the lawsuit, shareholders have until May 5, 2025, to request appointment as a lead plaintiff. However, it is important to note that participating in the recovery process does not require serving as a lead plaintiff, and investors can still share in any potential restitution without any upfront costs.

Levi & Korsinsky has established a reputation for advocating on behalf of aggrieved shareholders, having successfully recovered hundreds of millions of dollars in compensation over the last two decades. The firm, equipped with a knowledgeable team of over 70 employees and extensive expertise in complex securities litigation, has ranked among the top securities litigation firms according to ISS Securities Class Action Services.

Contact Details

Affected shareholders are encouraged to reach out for assistance. Interested parties can contact Joseph E. Levi, Esq. via email at [email protected] or by phone at (212) 363-7500. The firm has set up a dedicated link for investors to request more information about their rights and options in relation to this lawsuit.

Conclusion

The developments surrounding Ready Capital Corporation serve as a crucial reminder of the risks associated with investing in the securities market, where transparency and accountability are vital. Investors should remain vigilant and informed about the status of their investments, particularly in light of legal actions such as this. The coming months will be critical for affected stakeholders as they navigate this legal landscape, and proactive measures can mean the difference between recovery and loss.