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

1. Ready Capital faces two securities class-action lawsuits impacting its financial reporting. 2. The Goebel lawsuit alleges misleading statements about non-performing loans in the CRE portfolio. 3. A shocking net loss announcement caused Ready Capital's shares to drop nearly 27%. 4. Hagens Berman is investigating potential corporate wrongdoing related to disclosures. 5. The firm urges affected investors to participate in the ongoing investigation.

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Why Very Bearish?

The lawsuit allegations and significant losses could severely damage investor confidence and stock value, as seen in similar historical situations where companies faced lawsuits regarding misleading statements and financial disclosures, resulting in sharp declines in stock prices.

How important is it?

The article highlights significant allegations against Ready Capital, indicating possible long-term repercussions for the company's financial health and stock performance, which is crucial for investor decisions.

Why Short Term?

Investor sentiment is likely to remain negative due to ongoing legal scrutiny and potential liabilities, impacting stock prices in the immediate future.

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SAN FRANCISCO, May 03, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC), a New York-based real estate finance firm, is grappling with intensifying investor scrutiny after being named in two securities class-action lawsuits that have cast a shadow over its financial reporting and sent its stock tumbling. Most recently, on April 23, 2025, a second lawsuit, styled Goebel v. Ready Capital Corporation, et al., No. 1:25-cv-03373 (S.D.N.Y.) alleges an expanded class period. The Goebel suit seeks to represent investors who purchased or otherwise acquired Ready Capital common stock between August 8, 2024 and March 2, 2025. 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. Expanded Class Period: Aug. 8, 2024 – Mar. 2, 2025Lead Plaintiff Deadline: May 5, 2025Visit: www.hbsslaw.com/investor-fraud/rc Contact the Firm Now: RC@hbsslaw.com | 844-916-0895 The Goebel Ready Capital (RC) Securities Class Action: The lawsuit accuses the company and several top executives of violating federal securities laws. Central to the complaint are allegations that Ready Capital repeatedly assured investors that the company was seeing improving credit metrics across its loan portfolio while downplaying 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. More specifically, the Goebel complaint alleges that Ready Capital issued statements that were either misleading or omitted critical information about the true state of its business. Among the key contentions: Significant non-performing loans in Ready Capital’s CRE portfolio were hampering its financial performance and were not likely to be collectible;The company’s performance improvement initiatives failed to “further derisk[]” the CRE portfolio;In contrast to CEO Thomas E. Capasse’s repeated assurances that the company’s loan portfolio showed stabilizing credit metrics, the credit metrics were not stabilizing; andThe significant non-performing loans in Ready Capital’s CRE portfolio were not accurately reflected in the company’s expected credit loss or valuation allowance and, as a result, the company’s financial reporting was materially false and misleading. Investors learned the truth 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. The market responded with alarm. Shares of Ready Capital nosedived nearly 27% following the announcement, wiping out a significant chunk of shareholder equity and raising fresh doubts about the company’s risk management and disclosure practices. Hagens Berman’s Investigation: Investor rights law firm Hagens Berman has launched an active investigation into Ready Capital’s financial disclosures and practices during the class period. The firm, known for its focus on corporate accountability, is urging investors who suffered substantial losses to come forward and share information that could aid its probe. Reed Kathrein, a partner at Hagens Berman leading the investigation, stated, “Our investigation seeks to uncover whether Ready Capital deliberately obscured the severity of its non-performing loans, leaving investors in the dark about the true risks facing the company’s commercial real estate portfolio.” 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 RC@hbsslaw.com. About Hagens BermanHagens 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

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