A securities class action has been filed in the USDC –S.D.N.Y. against Ready Capital Corporation (RC) (“Ready Capital” or the “Company”) on behalf of all persons or entities who purchased or otherwise acquired Ready Capital common stock between November 7, 2024, and March 2, 2025 (the “Class Period”).
Ready Capital is a real estate finance company which originates, acquires, finances, and services lower-to-middle-market (“LLM”) commercial real estate (“CRE”) loans, small business administration loans, residential mortgage loans, and other real estate-related investments.
The Complaint alleges that, Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) that significant non-performing loans in its CRE portfolio were not likely to be collectible;
(2) that Ready Capital would fully reserve these problem loans in order to “stabilize” its CRE portfolio;
(3) that this was not accurately reflected in Ready Capital’s current expected credit loss or valuation allowances;
(4) that, as a result, the Company’s financial results would be adversely affected; and
(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
As a result of the Company’s fourth quarter and full year 2024 financial results, Ready Capital’s stock price fell $1.86, or 26.8%, to close at $5.07 per share on March 3, 2025, on unusually heavy trading volume.
If you purchased Ready Capital common stock during the Class Period, and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.