Ready Capital Shareholders Face Crucial Deadline: What Investors Need to Know About the Class Action Lawsuit

The recent legal actions against Ready Capital Corporation (NYSE: RC) have introduced a critical deadline for shareholders, with Rosen Law Firm urging investors to act swiftly to protect their rights. As allegations of financial misrepresentation and corporate negligence come to light, the stakes are high for those who held the company’s stock during the specified periods. Below is an analysis of the situation, its implications, and the steps investors must take by May 5, 2025.

The Lawsuits and Allegations

Two class action lawsuits—Goebel v. Ready Capital Corporation (filed April 23, 2025) and Quinn v. Ready Capital Corporation (filed earlier in 2025)—accuse the company of misleading investors about the health of its commercial real estate (CRE) loan portfolio. The lawsuits, both pending in the U.S. District Court for the Southern District of New York, focus on alleged misstatements made between August 8, 2024, and March 2, 2025 (expanded class period for Goebel) and November 7, 2024, to March 2, 2025 for Quinn).

Key allegations include:
- Concealment of Non-Performing Loans: Ready Capital allegedly downplayed the severity of its non-performing CRE loans, which were unlikely to be collected.
- False Financial Assurances: Executives, including CEO Thomas E. Capasse, made misleading statements about “stabilizing” credit metrics and improving risk management, which later proved false.
- Misleading Financial Reports: The company failed to disclose a $284 million reserve taken in March 2025 to account for underperforming loans, which caused its stock to plummet nearly 27% on March 3, 2025.

The Deadline and Investor Rights

The lawsuits’ lead plaintiff deadline is set for May 5, 2025. Shareholders who purchased RC stock during the class periods may qualify for compensation but must act promptly to:
1. File a Lead Plaintiff Motion: Investors with significant losses can apply to represent the class, a role requiring “the greatest financial interest” and adherence to legal standards.
2. Submit Loss Submissions: Even without seeking lead plaintiff status, affected investors must register by May 5 to remain eligible for potential recoveries.

Why This Matters to Investors

The March 3 disclosures triggered not only a stock collapse but also revealed deeper financial vulnerabilities. Ready Capital’s reported fourth-quarter 2024 net loss of $1.80 per share and full-year 2024 loss of $2.52 per share underscored the severity of its missteps. The company also slashed its dividend by 50% and faced a sharp drop in book value, signaling broader instability.

Legal Landscape and Firm Credentials

Rosen Law Firm, with a track record of recovering over $438 million for investors in 2019 and ranked #1 in securities class action settlements by ISS, is handling the cases. Other notable firms include:
- Hagens Berman, which invites whistleblowers to share non-public information for potential SEC rewards (up to 30% of recoveries).
- Robbins Geller Rudman & Dowd LLP, known for securing over $2.5 billion in recoveries in 2024 alone.

What Investors Should Do Now

1. Verify Eligibility: Determine if you purchased RC stock during the class periods.
2. Consult Counsel: Contact Rosen Law Firm or other firms by May 5 to discuss options.
3. Stay Informed: Monitor updates via the firms’ portals or social media (e.g., @rosen_firm on Twitter).

Conclusion: Act Now or Risk Losing Rights

The May 5 deadline is non-negotiable for shareholders seeking to recover losses tied to Ready Capital’s alleged misconduct. With the company’s stock down nearly 27% post-disclosure and its financial credibility in question, investors must act decisively.

Key Takeaways:
- Urgency: Missing the deadline forfeits your right to participate in the lawsuit.
- Potential Recovery: Historical settlements suggest significant payouts if the cases succeed.
- Corporate Accountability: The lawsuits highlight the risks of opaque financial reporting, urging investors to prioritize due diligence.

For those impacted, the path forward is clear: contact qualified legal counsel immediately. The clock is ticking.

This analysis is for informational purposes only. Consult a licensed attorney or financial advisor before making decisions.