Ready Capital Investors: Act Now to Lead Securities Fraud Lawsuit and Seek Recovery

The recent securities fraud lawsuit against Ready Capital Corporation (NYSE: RC) has opened a critical window for investors who suffered losses to seek compensation and potentially lead the case. With the stock plummeting nearly 27% in March 2025 after revelations of hidden financial risks, the stakes are high for those who held shares during the Class Period. This article breaks down the case details, deadlines, and steps investors must take to protect their interests.

The Case Against Ready Capital: Allegations of Financial Misstatements

The lawsuit (Quinn v. Ready Capital Corporation, No. 25-cv-01883) accuses Ready Capital and its executives of misleading investors between November 7, 2024, and March 2, 2025. Central to the claims are allegations that the company:
1. Omitted material risks in its commercial real estate (CRE) portfolio, including non-performing loans unlikely to be collected.
2. Failed to disclose required reserves, which later forced a $284 million write-down in Q4 2024.
3. Inflated financial results by misrepresenting Current Expected Credit Loss (CECL) reserves and valuation allowances.

On March 3, 2025, Ready Capital disclosed a net loss of $1.80 per share for Q4 2024 and a full-year loss of $2.52 per share, triggering the stock’s sharp decline. The complaint argues these disclosures revealed the truth investors were denied during the Class Period.

Key Deadlines: Lead Plaintiff Deadline Looms

Investors holding RC shares during the Class Period must act swiftly:
- May 5, 2025: The deadline to file motions to become lead plaintiff. The court will select the investor with the largest financial loss who can adequately represent the class.
- Registration Deadline: While non-lead plaintiffs don’t need to act by May 5, they must register their claims by the court’s final notice date (typically several months later) to participate in any recovery.

Law Firms Leading the Charge

Two prominent firms are actively recruiting shareholders to join the case:
1. Robbins Geller Rudman & Dowd LLP: Known for recovering over $2.5 billion for investors in 2024, this firm emphasizes its role in the historic $7.2 billion Enron settlement. Contact attorneys J.C. Sanchez or Jennifer N. Caringal for participation.
2. The Gross Law Firm: Offers portfolio monitoring services to track case progress and deadlines, with a focus on holding companies accountable for fraud.

Why Investors Should Act Now

The lawsuit underscores a broader theme in real estate finance: transparency around non-performing assets. With CRE markets volatile due to rising interest rates and economic uncertainty, investors must scrutinize companies’ disclosures. Ready Capital’s case highlights how delayed revelations can devastate shareholder value.

Conclusion: Don’t Miss Your Opportunity

For investors who purchased RC shares between November 2024 and March 2025, the lawsuit presents a clear path to recovery—if they act before the May 5 deadline. With Robbins Geller’s proven track record and the Gross Law Firm’s proactive approach, the case has the potential to secure meaningful compensation.

The data speaks for itself: the $284 million write-down and 27% stock drop demonstrate the materiality of the alleged misstatements. By registering now, investors can ensure their voice is heard—and their losses addressed—in what could become a landmark securities fraud case. Time is running out: act before May 5 to protect your interests.

This article is for informational purposes only. Investors should consult legal counsel before taking action.