Lawsuit Targets Ready Capital (RC) for Misleading Statements on CRE Loans– Hagens Berman

Associated Press

14-04-2025

SAN FRANCISCO, April 14, 2025 (GLOBE NEWSWIRE) -- New York-based real estate finance company Ready Capital Corporation (NYSE: RC) is facing heightened scrutiny as it is now the subject of a securities class-action lawsuit.
Hagens Berman is investigating the alleged claims and urges investors who purchased Ready Capital shares and suffered substantial losses to submit your losses now.
The firm also encourages persons with knowledge who may assist the firm's investigation to contact its attorneys.
Class Period: Nov. 7, 2024 – Mar. 2, 2025
Lead Plaintiff Deadline: May 5, 2025
Visit: www.hbsslaw.com/investor-fraud/rc
Contact the Firm Now: [email protected]
844-916-0895
Ready Capital (RC) Securities Class Action:
The case, Quinn v. Ready Capital Corporation, filed in the U.S. District Court for the Southern District of New York, accuses the company and certain senior executives of violating the Securities Exchange Act of 1934. At the heart of the allegations are claims that Ready Capital misrepresented the health of its commercial real estate (CRE) loan portfolio, which included a significant volume of non-performing loans.
The lawsuit alleges that Ready Capital failed to disclose critical issues with its CRE portfolio, including loans unlikely to be collectible. According to the complaint, these problems were not adequately reflected in the company's credit loss or valuation allowances.
This alleged lack of transparency came to a head on March 3, 2025, when Ready Capital reported a fourth-quarter 2024 net loss of $1.80 per share and a full-year loss of $2.52 per share. The company attributed these losses to 'decisive actions' aimed at stabilizing its balance sheet, including fully reserving $284 million for non-performing loans in its CRE portfolio.
The market reaction was swift and severe. On the day of the announcement, Ready Capital's stock price plummeted nearly 27%, erasing significant shareholder value.
Hagens Berman's Investigation:
Investor rights law firm Hagens Berman is actively investigating claims related to Ready Capital's disclosures and financial practices during the class period.
Reed Kathrein, a partner at Hagens Berman leading the investigation, stated, 'Our focus is on whether Ready Capital concealed the true extent of non-performing loans in its commercial real estate portfolio and failed to properly account for these losses in its financial statements. Investors rely on accurate reporting to make informed decisions, and any misrepresentation undermines market integrity.'
If you invested in Ready Capital and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Ready Capital case and our investigation, read more»
Whistleblowers: Persons with non-public information regarding Ready Capital should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895