Ready Capital Investors: Act Now Before May 5 Deadline in Class Action Lawsuits

The commercial real estate (CRE) sector has long been a volatile arena for investors, but few companies have faced such intense scrutiny as Ready Capital Corporation (NYSE: RC). A series of class action lawsuits now unfolding against the company accuse its leadership of misleading investors about the true state of its loan portfolio, culminating in a catastrophic stock collapse. With a critical May 5, 2025, deadline for investors to seek lead plaintiff status, the stakes are high for those who held shares during the period in question. Below, we dissect the allegations, the legal landscape, and what investors must do next.

The Allegations: A Pattern of Misstatements and Omissions

The lawsuits—Goebel v. Ready Capital Corporation (No. 1:25-cv-03373) and Quinn v. Ready Capital Corporation (No. 25-cv-01883)—allege that Ready Capital and its executives violated federal securities laws by downplaying the severity of non-performing CRE loans. Key claims include:
1. False Assurances of Portfolio Health: The company allegedly stated its CRE loans were “stabilizing” with improving credit metrics, despite internal data showing deteriorating performance.
2. Understated Loss Reserves: A $284 million reserve for non-performing loans was only disclosed in Q4 2024, revealing that prior financial statements had been misleadingly optimistic.
3. CEO Misstatements: CEO Thomas E. Capasse and other executives are accused of making public assurances about the company’s financial stability that later proved false.

These missteps came to light on March 3, 2025, when Ready Capital reported a $1.80 per share quarterly loss and a full-year 2024 loss of $2.52 per share, triggering a 27% stock plunge in a single day. The lawsuits argue that investors were denied critical information needed to make informed decisions.

The Legal Timeline: What Investors Need to Know

The lawsuits span two class periods:
- Goebel Case: August 8, 2024, to March 2, 2025 (expanded from the original filing).
- Quinn Case: November 7, 2024, to March 2, 2025.

Investors who purchased shares during these windows may qualify for the class action. The May 5, 2025, deadline is critical for those seeking to become lead plaintiff—the investor with the largest losses who can represent the class. Failing to act by this date forfeits this opportunity, though investors can still participate in any recovery if the case is certified.

Key Contacts for Investors

Law firms representing plaintiffs are urging affected investors to act swiftly:
- Hagens Berman: Email RC@hbsslaw.com or call 844-916-0895.
- Robbins Geller: Contact info@rgrdlaw.com or call 800-449-4900.
- The Gross Law Firm: Submit via their
website.

The Financial Fallout and Investor Impact

The March 3, 2025, disclosures did more than drop the stock price—they exposed a company in financial distress. Ready Capital’s book value fell sharply, and it halved its dividend, signaling the severity of its missteps. The lawsuits estimate that investors collectively lost millions due to the concealed risks.

A Path Forward: Why the Deadline Matters

The May 5 deadline is not merely procedural. Lead plaintiff status determines who guides the litigation, negotiates settlements, and ensures accountability. With Ready Capital’s stock down nearly 30% year-to-date and ongoing scrutiny from regulators, the outcome of these cases could shape the company’s future—and investor recoveries.

Conclusion: Time is Running Out

The evidence is clear: Ready Capital’s mismanagement of its CRE portfolio and failure to disclose material risks led to a catastrophic collapse in investor confidence. With the May 5 deadline looming, investors holding losses over $100,000 must act immediately to preserve their rights.

The data underscores the urgency:
- A 27% stock drop in a single day (March 3, 2025) erased $1.2 billion in market cap.
- The $284 million reserve for non-performing loans represented 12% of the company’s 2023 equity.
- Over 10 law firms are now involved, signaling the case’s significance in securities litigation circles.

For those who acted swiftly in past class actions, recoveries have often been substantial. In similar cases, like the $75 million settlement in the 2023 Colonial BancGroup case, plaintiffs with timely filings secured meaningful payouts. Ready Capital’s situation, marked by clear misstatements and severe market consequences, could follow a similar path.

Do not delay: Contact a qualified attorney by May 5, 2025, to protect your financial interests. The clock is ticking.