Ready Capital (RC) Faces Investor Backlash as Lawsuit Alleges Concealed CRE Loan Woes - Hagens Berman

RC Investors with Losses Encouraged to Contact the Firm

San Francisco, California--(Newsfile Corp. - April 22, 2025) - Ready Capital Corporation (NYSE: RC), a New York-based real estate finance firm, is grappling with intensifying investor scrutiny after being named in a securities class-action lawsuit that has cast a shadow over its financial reporting and sent its stock tumbling.

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
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Ready Capital (RC) Securities Class Action:

The lawsuit, filed in the U.S. District Court for the Southern District of New York under the case name Quinn v. Ready Capital Corporation, accuses the company and several top executives of violating federal securities laws. Central to the complaint are allegations that Ready Capital downplayed the extent of trouble in its commercial real estate (CRE) loan portfolio, particularly regarding a sizable tranche of loans that were not performing as expected.

According to court documents, plaintiffs claim that between November 2024 and early March 2025, Ready Capital issued statements that were either misleading or omitted critical information about the true state of its business. Among the key contentions: the company allegedly failed to alert investors to the magnitude of non-performing CRE loans, did not disclose that full reserves would be required to cover these problematic assets, and failed to accurately reflect these risks in its reported credit loss allowances. The complaint further asserts that these omissions painted an overly optimistic picture of Ready Capital's financial health.

The issue reached a boiling point on March 3, 2025, when Ready Capital stunned the market with a fourth-quarter net loss of $1.80 per share and a full-year loss of $2.52 per share for 2024. The company attributed the downturn to "decisive actions" taken to strengthen its balance sheet, including a sweeping $284 million reserve for underperforming CRE loans. The company also halved its quarterly dividend and reported a sharp drop in book value.