SAN DIEGO, March 23, 2025 – Robbins Geller Rudman & Dowd LLP, a prominent legal firm, is calling on investors who bought or acquired Ready Capital Corporation (NYSE: RC) common stock during a specified period to come forward as potential lead plaintiffs in a brewing class action lawsuit. The legal action addresses alleged infractions under the Securities Exchange Act of 1934, focusing on Ready Capital and some of its top executives.
The lawsuit, formally known as Quinn v. Ready Capital Corporation, No. 25-cv-01883 (S.D.N.Y.), accuses the defendants of making misleading statements and failing to disclose critical financial concerns linked to uncollectible non-performing loans within its commercial real estate portfolio. Notably, purchasers of Ready Capital Corporation’s common stock between November 7, 2024, and March 2, 2025, inclusive, are urged to seek appointment by May 5, 2025.
Robbins Geller Rudman & Dowd LLP highlighted that affected investors experienced significant financial losses and should act promptly if they wish to participate actively in the lawsuit. The firm’s attorneys, J.C. Sanchez or Jennifer N. Caringal, are available for consultation via phone or email to assist potential claimants in understanding the process and the possible implications of the case.
The underlying lawsuit alleges that Ready Capital’s public financial disclosures were inaccurate and incomplete, particularly in relation to the expected credit losses in its commercial real estate holdings. It argues that these discrepancies became starkly evident when Ready Capital disclosed a considerable loss in its fourth-quarter performance for 2024, amounting to a net loss of $1.80 per share, compounded annually to a $2.52 per share loss. This led to a sharp decline in stock value, nearly 27%, following the announcement on March 3, 2025.
At the heart of the matter is the claim that Ready Capital took too long to fully reserve for problem loans intended to stabilize its commercial real estate portfolio, actions which were not promptly reflected in the company’s financial statements. Investors claim the true risk was obscured, leading to unexpected losses when the true status of the non-performing loans was finally disclosed.
A lead plaintiff in a class action lawsuit such as this typically represents the interests of all class members, directing the litigation and any discussions related to a potential settlement. This role is not just pivotal but also strategic, as the lead plaintiff works closely with legal counsel to ensure all affected parties can recover rightful losses.
Robbins Geller Rudman & Dowd LLP is recognized globally for its commitment to protecting investor rights, having secured substantial monetary recoveries in significant securities fraud cases. Over recent years, the firm has topped industry rankings, attesting to its leadership in securing justice for investors against fraudulent activities by listed entities.
Interested parties are invited to reach out to Robbins Geller Rudman & Dowd LLP to further discuss their eligibility and involvement in the action. Each case the firm handles builds on its robust track record of navigating complex securities litigation designed to rectify financial misconduct and uphold market integrity.
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