Ready Capital's Rocky Road: Is Your Investment in RC Headed for a Lawsuit Win or Loss?

Investors in Ready Capital Corporation (RC) have been hit hard by a scandal that’s now led to a major class action lawsuit. If you lost money on this stock between November 2024 and March 2025, you’re not alone—and you might have a legal right to recover those losses. Let’s dig into what’s going on here and why this could be a turning point for shareholders.

What’s the Deal with Ready Capital?

Ready Capital is a real estate investment trust (REIT) focused on commercial real estate (CRE) lending. In theory, that’s a stable business—but the lawsuit claims the company cooked its books to hide a ticking time bomb: non-performing loans. According to Levi & Korsinsky LLP, the law firm behind the suit, RC allegedly misled investors about the health of its CRE portfolio, falsely inflating its financials and downplaying risks.

The Red Flags Are Blaring

Here’s why this matters:
1. Hidden Bad Loans: The lawsuit alleges RC had significant non-performing loans—loans unlikely to be repaid—that were buried in its financial statements.
2. Cooked Reserves: Instead of properly setting aside money to cover these bad loans, the company allegedly underreserved, making its balance sheet look stronger than it was.
3. Flawed Accounting: The CECL (Current Expected Credit Loss) model, which estimates potential losses, was supposedly misapplied to mask the true state of its finances.
4. Misleading Statements: Executives allegedly made rosy pronouncements about RC’s prospects that were “materially false” or lacked a reasonable basis.

This isn’t just about accounting nitpicks—it’s about whether investors were sold a lie about the company’s stability.

How Did This Affect RC’s Stock?

Let’s look at the numbers. During the class period (Nov 2024–Mar 2025), RC’s stock likely took a hit as the truth came out. Investors who bought in thinking the company was thriving may have seen their shares plummet.

If the data shows a significant drop during that window, it underscores why this lawsuit is critical. The sooner you act, the better your chance of recovery.

Why This Lawsuit Matters Now

Levi & Korsinsky, a firm with a 20-year track record of recovering hundreds of millions for investors, is leading the charge. Here’s what you need to know:
- Class Period: If you bought RC shares between November 7, 2024, and March 2, 2025, you’re eligible to join.
- No Cost to Participate: Shareholders don’t pay upfront—lawyers work on contingency.
- Deadline Alert: Missing the filing window (which could be as short as 60–90 days after the lawsuit was filed) means you lose your chance.

What Should You Do?

This isn’t a time to sit on the sidelines. Here’s your action plan:
1. Contact Levi & Korsinsky: Use their submission form or reach out directly at jlevi@levikorsinsky.com or (212) 363-7500.
2. Document Your Losses: Keep records of your RC trades during the class period.
3. Stay Informed: Even if you still hold RC stock, you can still participate—this isn’t just for those who sold.

The Bottom Line: This Isn’t Over Yet

The CRE sector has been shaky lately, with rising interest rates and economic uncertainty hitting commercial real estate hard. If RC’s alleged missteps are proven, it could set a precedent for other companies hiding bad loans.

The data will tell the story: If RC’s stock underperformed peers during the class period, that’s a smoking gun. Meanwhile, Levi & Korsinsky’s track record—including recoveries in cases like Tesla and Boeing—suggests they’re serious about holding RC accountable.

Final Verdict: Don’t let your losses go unaddressed. This lawsuit is your chance to fight back. Time is ticking—act now.

For further analysis, check out:

This could reveal whether RC’s decline was industry-wide or specific to its mismanagement.

Investors, this is your moment. Don’t miss it.