Deadline Approaching: Ready Capital Corporation (RC) Investors Who Lost Money Urged To Contact Law Offices of Howard G. Smith

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 5, 2025 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC) common stock between November 7, 2024 and March 2, 2025, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN READY CAPITAL CORPORATION (RC), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [e-mail], by telephone at [phone] or visit our website at www.howardsmithlaw.com.

What Happened?

On March 3, 2025, before the market opened, Ready Capital announced its fourth quarter and full year 2024 financial results, reporting fourth quarter 2024 net loss of $1.80 per share and full year 2024 net loss of $2.52 per share. The Company explained it had to take “decisive actions to stabilize” its “balance sheet going forward by fully reserving for all of our nonperforming loans in our CRE portfolio.” This included, among other actions, taking $284 million in combined Current Expected Credit Loss (“CECL”) and valuation allowances in order to mark the Company’s non-performing loans to current values. The Company further revealed that its total leverage increased to “3.8x,” up from the prior quarter’s total leverage of “3.3x.”

On this news, Ready Capital’s stock price fell $1.86, or 26.8%, to close at $5.07 per share on March 3, 2025, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that significant non-performing loans in its CRE portfolio were not likely to be collectible; (2) that Ready Capital would fully reserve these problem loans in order to “stabilize” its CRE portfolio; (3) that this was not accurately reflected in Ready Capital’s current expected credit loss or valuation allowances; (4) that, as a result, the Company’s financial results would be adversely affected; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Ready Capital common stock during the Class Period, you may move the Court no later than May 5, 2025 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements.

Contact Us To Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: [phone]
Email: [e-mail],
Visit our website at: www.howardsmithlaw.com.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.

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