Ready Capital Corporation Faces Class Action After Financial Missteps
Ready Capital Corporation Faces Class Action Lawsuit
Robbins LLP has announced a class action lawsuit concerning Ready Capital Corporation (RC), highlighting the growing concerns among investors regarding the company’s recent financial disclosures. This legal development is particularly crucial for stockholders who acquired shares during the designated class period.
Understanding the Class Action
The class action is specifically aimed at investors who purchased Ready Capital common stock between November 7, 2024, and March 2, 2025. During this period, significant events unfolded that raised alarms about the company's financial integrity and transparency.
Overview of Ready Capital Corporation
Ready Capital is a well-established real estate finance firm, primarily focused on originating, acquiring, financing, and servicing loans for lower-to-middle-market commercial real estate, as well as small business administration loans and residential mortgages. Their operations have significant implications for investors who have financial stakes in the company.
The Key Allegations Against Ready Capital
According to the allegations detailed in the lawsuit, there were several critical disclosures that Ready Capital failed to make to its investors during the specified class period:
- The existence of substantial non-performing loans in their commercial real estate portfolio, suggesting these loans might not be collectible.
- The company’s decision to fully reserve these problem loans to stabilize their portfolio, which was not transparent to investors.
- Misrepresentation of the company's current expected credit loss figures, which contributed to an inaccurate portrayal of the company's financial health.
Impact of Disclosures on Stock Performance
On March 3, 2025, Ready Capital reported its fourth quarter and full-year financial results for 2024, revealing a net loss of $1.80 per share for the fourth quarter and $2.52 per share for the full year. This revelation prompted an immediate reaction in the stock market, resulting in a substantial decline in Ready Capital's stock price — plummeting $1.86 or approximately 26.8%, closing at $5.07 per share.
Next Steps for Investors
Investors who purchased Ready Capital shares during the class period may be eligible to participate in this class action. Those interested in pursuing the role of lead plaintiff in this case must file necessary documents with the court by the designated deadline. It’s important to note that being a lead plaintiff allows individuals to represent other class members during the litigation process. However, participation in the case is not required to qualify for recovery.
Contact Information for Questions and Concerns
If you have questions or need assistance regarding this class action, you can reach out to attorney Aaron Dumas, Jr. at Robbins LLP. The firm has extensive experience in shareholders' rights litigation and is committed to supporting investors in recovering their losses. You can contact them via phone at (800) 350-6003.
About Robbins LLP
Established in 2002, Robbins LLP has a noteworthy track record in advocating for shareholders’ rights, striving to hold company executives accountable while helping investors recover losses. Their dedication to improving corporate governance structures is evident through their relentless pursuit of financial justice for stockholders.
Frequently Asked Questions
What is the class action lawsuit against Ready Capital Corporation about?
The lawsuit addresses allegations that Ready Capital misled investors regarding significant non-performing loans in its portfolio during a specified period.
Who is eligible to participate in the lawsuit?
Investors who purchased Ready Capital Corporation stock between November 7, 2024, and March 2, 2025, may be eligible to participate.
What do investors need to do to be part of the class action?
Interested investors must file the necessary paperwork with the court by the specified deadline to pursue a lead plaintiff role.
What were the financial impacts reported by Ready Capital?
Ready Capital reported significant net losses per share for the fourth quarter and full year of 2024, which influenced its stock price negatively.
How can investors get more information about the class action?
Investors can contact attorney Aaron Dumas, Jr. at Robbins LLP or check the firm’s website for more information regarding the class action.
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