StockNews.AI
RC
StockNews.AI
163 days

SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Ready Capital

1. Faruqi & Faruqi is investigating claims against Ready Capital for misleading statements. 2. Investors can join a class action lawsuit by May 5, 2025. 3. Ready Capital reported significant losses and increased leverage in Q4 2024. 4. Stock price dropped 26.8% after the financial results announcement. 5. The lawsuit suggests serious implications for company transparency and financial health.

6m saved
Insight
Article

FAQ

Why Very Bearish?

The substantial stock price drop following the announcement indicates severe market concerns, similar to past cases where legal actions negatively impacted stock prices significantly, such as with LendingClub in 2016, where stock plummeted due to similar securities law violations.

How important is it?

The article outlines severe allegations against Ready Capital, with potential financial repercussions influencing investor sentiment and trading behavior significantly.

Why Short Term?

Immediate investor reaction to the lawsuit and financial losses will likely affect stock price in the near term as concerns about the company’s viability and transparency are still fresh.

Related Companies

LENDRC
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Ready Capital To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $50,000 in Ready Capital between November 7, 2024 and March 2, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, March 09, 2025 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC) and reminds investors of the May 5, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (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. 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 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. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.   Faruqi & Faruqi, LLP also encourages anyone with information regarding Ready Capital’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Ready Capital class action, go to www.faruqilaw.com/RC or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fdafeab3-e66c-4705-b292-211a18341546

Related News