SAN DIEGO, March 12, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities that purchased or otherwise acquired Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) common stock between November 7, 2024 and March 2, 2025 (the “Class Period”), charging the Company and certain senior executives with violations of the federal securities laws (collectively, “Defendants”).
Ready Capital investors have until May 5, 2025 to seek appointment as lead plaintiff of the Ready Capital class action lawsuit.
If you purchased or acquired Ready Capital common stock between November 7, 2024 and March 2, 2025, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/ready-capital/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Ready Capital is a real estate finance company that 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-focused investments.
The Ready Capital lawsuit alleges that Defendants made false and/or materially misleading statements about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) significant non-performing loans in Ready Capital’s CRE portfolio were not likely to be collectible; (2) the Company would fully reserve these problem loans to “stabilize” its CRE portfolio; (3) Ready Capital’s current expected credit loss or valuation allowances did not reflect these facts; and (4) as a result, the Company’s financial results would be adversely affected.
The truth emerged on March 3, 2025, when Ready Capital announced its fourth quarter and full year 2024 financial results. In the press release, the Company further disclosed it “ha[d] taken decisive actions to stabilize and better position our balance sheet going forward by fully reserving for all of our non-performing loans in our CRE portfolio.” These actions included taking approximately $382 million in reconciling items, including $284 million in combined current expected credit loss and valuation allowances to mark the Company’s non-performing loans to current values. As a result, Ready Capital’s book value per share was significantly reduced to $10.61 compared to the prior quarter’s $12.59.
On this news, the price of Ready Capital stock fell by $1.86 per share, or approximately 27%, to close at $5.07 per share on March 3, 2025.
About DiCello Levitt
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