Ready Capital Corporation (NYSE: RC): Ready Capital Corporation (“Ready Capital” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Ready Capital stock. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Quinn v. Ready Capital Corporation, et al., No. 25-cv- 01883.
 
If you incurred losses on your investments in Ready Capital, you are encouraged to submit your information.
 
Why was Ready Capital Sued for Securities Fraud?
 
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.
 
As alleged, Ready Capital misrepresented the credit performance of its loans, stating that its “CRE portfolio is showing stabilizing credit metrics” and that it was “well positioned to capitalize on the tailwinds in the CRE market.”  In reality, Ready Capital’s CRE portfolio was plagued by non-performing loans and its CRE portfolio had not stabilized.
 
The Stock Declines as the Truth is Revealed
 
On March 3, 2025, Ready Capital announced financial results for 4Q 24, disclosing that it would recognize a $382 million charge, which included $284 million in combined Current Expected Credit Losses (CECL) and valuation allowances on its nonperforming loans.  Ready Capital also announced it would be reducing its dividend to $0.125 per share.
 
This news caused the price of Ready Capital stock to decline almost 27%, from $6.93 per share at close on February 28, 2025, to $5.07 per share at close on March 3, 2025.
 
What are my Rights?
 
If you purchased or otherwise acquired Ready Capital securities, you may ask the Court no later than May 5, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
 
If you incurred losses on your investments in Ready Capital, you are encouraged to submit your information to speak with an attorney about your rights.
 
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
 
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
 
Why Bleichmar Fonti & Auld LLP?
 
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
Attorney advertising. Past results do not guarantee future outcomes.