Class Action Filed Against Ready Capital for Misleading Financial Statements

Glancy Prongay & Murray LLP (“GPM”) has initiated a class action lawsuit in the United States District Court for the Southern District of New York. The case, titled Quinn v. Ready Capital Corporation, et al., Case No. 25-cv-1883, represents individuals and entities who purchased Ready Capital Corporation (“Ready Capital” or the “Company”) RC common stock between November 7, 2024 and March 2, 2025 (the “Class Period”). The plaintiff asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors should be aware they have 60 days from the date of this notice to request the Court to appoint them as lead plaintiff in this case.

IF YOU SUFFERED A LOSS ON YOUR READY CAPITAL INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS UNDER THE FEDERAL SECURITIES LAWS.

Recent Developments and Financial Reporting

On March 3, 2025, before markets opened, Ready Capital disclosed its fourth quarter and full year 2024 financial results. The report indicated a fourth quarter net loss of $1.80 per share and a full year loss of $2.52 per share. The Company communicated it had to take decisive actions to stabilize its balance sheet moving forward, including fully reserving for all of our nonperforming loans in our CRE portfolio. This decision involved recording $284 million in combined Current Expected Credit Loss (“CECL”) and valuation allowances to reflect the current values of these loans. Additionally, the Company stated that its total leverage escalated to “3.8x,” compared to “3.3x” in the preceding quarter.

Following this announcement, the stock price of Ready Capital dropped by $1.86, or 26.8%, closing at $5.07 per share on March 3, 2025, accompanied by notably high trading volume.

Allegations in the Lawsuit

The complaint in this class action alleges that, during the Class Period, Defendants made materially false and misleading statements while failing to disclose adverse facts about the Company’s business performance. Key allegations include: (1) the significant non-performing loans in its CRE portfolio were unlikely to be collectible; (2) Ready Capital planned to fully reserve these problem loans to stabilize its CRE portfolio; (3) these issues were not accurately represented in the Company’s reported expected credit loss or valuation allowances; (4) the financial outcomes would be negatively impacted; and (5) the Defendants’ favorable statements about the Company’s performance were misleading and not grounded in reality.

Individuals who purchased Ready Capital common stock during the Class Period may file a motion with the Court to appoint themselves as lead plaintiff, but they must do so within 60 days from the date of this notice.

Contact Information for Participation

For additional information about this case, or if you have any questions regarding this announcement or your rights, please reach out:

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.
Follow us for updates on LinkedIn, Twitter, or Facebook.

For email inquiries, please include your mailing address, phone number, and the number of shares purchased.

As a member of the Class, you do not need to take immediate action; you may retain counsel if desired, or simply remain an absent Class member.

This press release may qualify as Attorney Advertising in certain jurisdictions under applicable laws and ethical standards.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306599695/en/

Contact Us:

Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.