Kirby McInerney LLP Urges Investors in Ready Capital Corporation to Inquire About Their Rights in Class Action Lawsuit

/EIN News/ -- NEW YORK, April 18, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE:RC) securities during the period from November 7, 2024, through March 2, 2025 (“the Class Period”). Investors have until May 5, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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On March 3, 2025, before the market opened, Ready Capital announced its fourth quarter and full year 2024 financial results, reporting fourth quarter 2024 net loss of $1.80 per share and full year 2024 net loss of $2.52 per share. The Company explained that it had to take “decisive actions to stabilize” its “balance sheet going forward by fully reserving for all of our non-performing loans in our CRE portfolio.” This included, among other actions, taking $284 million in combined Current Expected Credit Loss (“CECL”) and valuation allowances in order to mark the Company’s non-performing loans to current values. The Company further revealed that its total leverage increase to “3.8x,” up from the prior quarter’s total leverage of “3.3x.” On this news, the price of Ready Capital declined by $1.86 per share, or approximately 26%, from $6.93 per share on February 28, 2025, to close at $5.07 on March 3, 2025.

The complaint alleges that defendants, throughout the Class Period, failed to disclose: (1) that significant non-performing loans in its CRE portfolio were not likely to be collectible; (2) that Ready Capital would fully reserve these problem loans in order to “stabilize” its CRE portfolio; and (3) that this was not accurately reflected in Ready Capital’s current expected credit loss or valuation allowances.

If you purchased or otherwise acquired Ready Capital securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com