Understanding the Recent Lawsuit Against Ready Capital Corporation
Class Action Lawsuit Filed Against Ready Capital Corporation
Investors in Ready Capital Corporation, officially known as Ready Capital (RC), have recently been alerted regarding a class action lawsuit. This legal action was initiated by Glancy Prongay & Murray LLP, and filed in the United States District Court for the Southern District of New York. The case is identified as Quinn v. Ready Capital Corporation, et al.
The lawsuit specifically targets those who acquired Ready Capital common stock during a designated period, seeking accountability for potentially misleading practices that occurred within the company.
Critical Information for Investors
Those affected have a period of 60 days from the notice date to assert their right to become lead plaintiff in this matter. This timeframe is crucial for investors wishing to participate actively in the lawsuit and seek any claims under the federal securities laws.
What Led to the Lawsuit?
On March 3, 2025, Ready Capital revealed its financial results for the fourth quarter and the entire year of 2024, which turned out to be significantly disappointing. The company reported a net loss of $1.80 per share for the fourth quarter and a total net loss of $2.52 per share for the full year. Management indicated that the decision to fully reserve for nonperforming loans was a necessary step toward stabilizing their balance sheet moving forward.
This announcement shocked the markets, leading to a drop in Ready Capital's stock price by $1.86, or 26.8%, resulting in a closing price of $5.07 per share on the day the news broke.
Details of the Allegations
The substantive claims within the lawsuit assert that the defendants made false and misleading statements that misrepresented the company's operational stability and future profitability. Investors were allegedly not informed of the significant issues regarding non-performing loans within Ready Capital's commercial real estate portfolio.
Specifically, it is claimed that there were shortcomings in the disclosures regarding: (1) the collectibility of non-performing loans; (2) actions taken to reserve these loans; (3) discrepancies in valuation assessments; and (4) the overall projected financial impact of these factors.
Potential Implications and Investor Actions
If you are one of the investors who purchased Ready Capital common stock during the aforementioned period, it is imperative to evaluate your options. You have until the specified timeframe to consider becoming involved in this lawsuit. Legal counsel can provide guidance on how best to proceed if you wish to pursue this matter further.
How to Reach Out for More Information
For further inquiries about this class action or how it may affect your investment, please reach out to:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224.
Visit our website at www.glancylaw.com.
If you prefer contacting via email, please ensure to include your mailing address, telephone number, and details of your share transactions for a quicker response.
Even though you don't need to take immediate action, being informed and staying connected with the developments in this case may be beneficial.
Frequently Asked Questions
What is the purpose of this class action lawsuit?
The class action lawsuit aims to hold Ready Capital accountable for potentially misleading investors regarding its financial health and the management of its non-performing loans.
How long do I have to participate in the lawsuit?
Investors have 60 days from the notice date to file a motion to serve as lead plaintiff in the action.
What should I do if I am an affected investor?
You should reach out to legal counsel or contact the firm handling the case to discuss your potential involvement.
What were the financial results that triggered the lawsuit?
Ready Capital reported a substantial net loss in Q4 2024 and for the entire year, which raised concerns about its operational stability.
Who can I contact for more information?
You can get in touch with Charles Linehan at Glancy Prongay & Murray LLP for questions regarding the lawsuit.
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