Ready Capital Investors: Act Now to Join the Fraud Lawsuit and Seek Compensation

The recent turmoil at Ready Capital Corporation (NYSE: RC) has sparked a major class action lawsuit, offering investors an urgent opportunity to hold the company accountable for alleged financial fraud. If you owned RC shares between November 7, 2024, and March 2, 2025, this is your moment to act.

The Allegations: A Pattern of Misleading Statements

Ready Capital, a major player in commercial real estate (CRE) lending, is accused of deceiving investors about the health of its loan portfolio. According to the lawsuit filed by the Schall Law Firm, the company claimed its CRE portfolio was “stabilizing” and positioned to capitalize on market “tailwinds.” In reality, the portfolio was riddled with non-performing loans.

The crux of the fraud:
- False Financial Reporting: Ready Capital allegedly underreported its Current Expected Credit Loss (CECL) and valuation allowances, masking the true impact of these toxic loans.
- Dividend Cut and Stock Collapse: On March 3, 2025, the company disclosed a $382 million charge, including $284 million for under-reserved CRE loans, and slashed its dividend by 50%. This revelation caused its stock to plummet nearly 27%, dropping from $6.93 to $5.07 per share.

The Legal Battle: Your Role as an Investor

The lawsuit, Quinn v. Ready Capital Corporation, is now pending in the U.S. District Court for the Southern District of New York. Here’s what you need to know:
- Class Period: Investors who bought RC shares between November 7, 2024, and March 2, 2025, qualify to join.
- Deadline: The May 5, 2025, deadline to apply to serve as lead plaintiff is fast approaching. Even if you don’t seek lead status, joining the class ensures you can share in any settlement or judgment.
- Law Firms Involved: The Schall Law Firm, BFA, and Robbins Geller are representing investors. Contact them now to secure representation.

Why This Matters for Investors

The $284 million charge and dividend cut signal a severe financial reckoning for Ready Capital. Its stock has lost over a quarter of its value in a single day, erasing billions in shareholder equity. The lawsuit argues this collapse was inevitable once the truth about its loans came to light.

Risks and Opportunities Ahead

• Regulatory Risks: While no SEC investigation is explicitly mentioned, the SEC Whistleblower Program is incentivizing insiders to report misconduct. A whistleblower tip could trigger a federal probe, amplifying pressure on the company.
• Recovery Potential: If the lawsuit succeeds, investors may recover losses tied to the stock drop and dividend cut. Historical class actions show average recoveries of 10–40% of claimed losses, depending on case strength.

Conclusion: Act Before May 5 – Your Rights Are at Stake

The numbers tell the story:
- RC’s stock dropped 27% in one day after its March 3 disclosures.
- Over $284 million in reserves were belatedly acknowledged, signaling systemic mismanagement.
- Multiple law firms are actively recruiting investors, with a strict May 5 deadline to secure lead plaintiff status.

Investors holding RC shares during the class period must act immediately. This is not just about compensation—it’s about demanding accountability for a company that allegedly prioritized short-term gains over transparency.

Don’t miss your chance. Contact the Schall Law Firm or another listed firm today. Time is running out.

Stay informed. Protect your investments.