Investors Urged to Pursue Legal Action in Ready Capital Case
Investors Urged to Take Action in Ready Capital Case
Faruqi & Faruqi, LLP Securities Litigation Partner Josh Wilson encourages investors who suffered losses exceeding $50,000 in Ready Capital to contact him directly to discuss their legal options.
If you've faced losses over $50,000 in Ready Capital and want to know more about your rights, reach out to Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating claims against Ready Capital Corporation (NYSE: RC). Investors are reminded of the deadline to seek the role of lead plaintiff in a federal class action that has recently been filed against the company.
Understanding the Allegations Against Ready Capital
The firm is taking a closer look at allegations that Ready Capital and its executives may have violated federal securities laws. These include providing false or misleading statements about the company's financial health, particularly regarding its commercial real estate (CRE) loan portfolio.
The investigation highlights major claims regarding significant non-performing loans in Ready Capital's CRE portfolio, indicating these loans were potentially uncollectable. The failure to disclose the full extent of these issues is paramount, as it misled investors.
Moreover, the firm claims that Ready Capital did not accurately represent its expected credit losses or reserve allowances, leading to misstatements regarding its financial performance and operational health.
Impact on Ready Capital's Financial Reporting
On the day before the market opened on March 3, Ready Capital disclosed its fourth quarter and full year 2024 financial results, revealing a troubling net loss of $1.80 per share for the fourth quarter and $2.52 per share for the full year. The company attributed these losses to their move to stabilize financial conditions by reserving for non-performing loans in its CRE portfolio. This decisive action involved a significant $284 million write-off of loans, signaling serious concerns about their financial outlook.
The revelation of such substantial financial loss adversely affected Ready Capital's stock price, which fell by $1.86, or 26.8%, closing at $5.07 per share on unusually high trading volumes.
The Role of the Lead Plaintiff
In this litigation process, the court appoints a lead plaintiff who possesses the largest financial interest in the outcome and can adequately represent the interests of all class members. Any potential class member has the option to seek this role or remain an absent class member, retaining their right to recovery irrespective of their decision.
Faruqi & Faruqi, LLP also is urging anyone who may have relevant information regarding Ready Capital's conduct—such as whistleblowers, former employees, or shareholders—to reach out.
How to Get Involved
For more information on how you can participate in the Ready Capital class action, you can visit the firm’s website or reach out to partner Josh Wilson directly at the numbers provided above.
Stay informed about updates on Faruqi & Faruqi on platforms like LinkedIn, X, and Facebook to gain insights into ongoing developments in this case.
Faruqi & Faruqi, LLP has successfully recovered hundreds of millions for investors since its inception in 1995. The firm has offices across several key states and is dedicated to representing the interests of those affected by corporate misconduct.
Frequently Asked Questions
What should I do if I lost money with Ready Capital?
If you lost more than $50,000 with Ready Capital, consider contacting a securities lawyer to discuss your legal rights and options for potential recovery.
What does being a lead plaintiff entail?
The lead plaintiff directs the litigation on behalf of all class members and has significant influence over the case's outcome.
How can I stay updated on this case?
You can follow updates through Faruqi & Faruqi's social media channels like LinkedIn, X, and Facebook.
Is there any cost involved in joining this class action?
Generally, there are no upfront costs for joining a class action; legal fees are usually only collected if the case is successful.
Can I keep my information confidential?
Yes, all communications with your attorney regarding this matter will be kept confidential.
About The Author
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