Deadline Looms for Ready Capital Investors: Act by May 5 to Seek Compensation in Securities Fraud Lawsuit

The clock is ticking for investors in Ready Capital Corporation (NYSE: RC) who suffered losses due to alleged securities fraud. A class action lawsuit filed in New York federal court claims the company misled investors about the health of its commercial real estate (CRE) portfolio, culminating in a catastrophic stock drop earlier this year. With a critical May 5, 2025 deadline, investors must act swiftly to preserve their rights to potential compensation.

The Case Against Ready Capital: A Portfolio in Crisis

The lawsuit, Quinn v. Ready Capital Corporation, alleges that executives concealed the severity of non-performing loans in its CRE portfolio during the Class Period of November 7, 2024, to March 2, 2025. Key claims include:
- Undisclosed Risks: The company failed to disclose that $284 million in CRE loans were unlikely to be collected, misleading investors about the portfolio’s stability.
- False Financial Assurances: Statements about strong financial performance were allegedly based on flawed credit loss reserves and valuation allowances.
- Market Impact: On March 3, 2025, Ready Capital revealed a 27% stock plunge after admitting it had fully reserved $284 million in non-performing loans, resulting in a fourth-quarter 2024 net loss of $1.80 per share.

Why the May 5 Deadline Matters

The deadline is non-negotiable for investors seeking to:
1. Become Lead Plaintiff: Those with significant losses may file motions by May 5 to represent the class. Lead plaintiff status requires demonstrating the “largest financial interest” and alignment with class interests.
2. Join the Class Action: Even without seeking lead plaintiff status, investors must register losses by May 5 to participate in any recovery.

Legal Firms in the Spotlight

Multiple high-profile firms are representing investors, each touting their credentials:
- The Rosen Law Firm: Cited a $438 million recovery for investors in 2020 and a record settlement against a Chinese company.
- Robbins Geller Rudman & Dowd LLP: Ranked #1 in 2024 for recovering over $2.5 billion for clients.
- Howard G. Smith’s Firm: Urges investors to contact them before the deadline to discuss claims.

This data visualization would show the stock’s rise during the Class Period, followed by its sharp decline on March 3, 2025.

Risks of Missing the Deadline

Failure to act by May 5 forfeits the right to:
- Participate in the lawsuit.
- Influence settlement negotiations.
- Share in any monetary recovery, even if the case succeeds.

The Financial Toll and Investor Options

Ready Capital’s stock collapse erased billions in investor value. The lawsuit hinges on proving that executives violated the Securities Exchange Act of 1934 by omitting material risks. Investors holding RC shares during the Class Period should:
1. Calculate losses using trade confirmations or brokerage statements.
2. Contact a law firm by May 5 to submit a claim.
3. Monitor court filings for updates via the firms’ websites or the U.S. District Court for the Southern District of New York.

Conclusion: Time Is Running Out

The May 5 deadline is a make-or-break moment for affected investors. With Ready Capital’s disclosures revealing a $284 million write-down and a 27% stock collapse, the stakes are clear. Law firms like Robbins Geller and Rosen have demonstrated success in recovering billions for clients, but their efforts depend on timely investor participation.

For context, consider this: In similar securities fraud cases, class members who miss lead plaintiff deadlines often miss out entirely on compensation. With Ready Capital’s case still in its early stages and no class certified yet, investors must act now.

Final Call to Action:
- Submit claims by May 5 via toll-free numbers like 866-767-3653 (Rosen Law) or 800-449-4900 (Robbins Geller).
- Visit rosenlegal.com or howardsmithlaw.com for case-specific portals.

The clock is ticking. Don’t let fleeting opportunity cost you the chance to recover losses from this alleged fraud.

This article provides general information and is not legal advice. Investors should consult a securities litigation attorney for case-specific guidance.