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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Ready Capital Corporation (RC)

1. A class action lawsuit has been filed against Ready Capital. 2. The lawsuit alleges misrepresentation of non-performing loans. 3. Ready Capital had to reserve approximately $382 million for these loans. 4. This revelation could significantly impact investor confidence. 5. The lead plaintiff motion deadline is May 5, 2025.

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FAQ

Why Very Bearish?

The misrepresentation of non-performing loans severely affects RC’s credibility and financial health. In similar cases, companies facing lawsuits often see stock price declines due to investor panic.

How important is it?

The misrepresentation of financial data is a serious issue that can lead to drastic changes in stock value. Investors may view this as a breach of trust, influencing their decision-making significantly.

Why Short Term?

The immediate legal challenges could lead to swift negative market reactions. Historical examples show that lawsuits often prompt quick sell-offs in stock prices.

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NYSE: RCNYSE: BXMTNYSE: CIM
NEW YORK, March 07, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC) securities between November 7, 2024 and March 2, 2025, inclusive (the “Class Period”). The Complaint alleges that Defendants made misrepresentations and failed to disclose material facts concerning significant non-performing loans in the Company’s portfolio that were not likely to be collectible. The truth emerged when the Company revealed it had to take “decisive actions to stabilize” its “balance sheet going forward” and fully reserve all non-performing loans in its CRE portfolio. This included taking approximately $382 million in reconciling items, to mark the Company’s non-performing loans to current values. Investors who purchased or otherwise acquired shares of Ready Capital should contact the Firm prior to the May 5, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com. Please visit our website at http://www.gme-law.com for more information about the firm.

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