Ready Capital (RC) Prnewswire·2025-03-09 22:20Core Viewpoint - A class action lawsuit has been filed against Ready Capital Corporation for allegedly misleading investors regarding the collectability of certain loans in its commercial real estate portfolio [1][2]. Company Overview - Ready Capital Corporation is a real estate finance company that focuses on originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans, small business administration loans, residential mortgage loans, and other real estate-related investments [1]. Allegations - The lawsuit claims that during the class period, Ready Capital failed to disclose significant non-performing loans in its commercial real estate portfolio that were unlikely to be collectible [2]. - It is alleged that the company fully reserved these problem loans to stabilize its portfolio, which was not accurately reflected in its expected credit loss or valuation allowances [2]. - Consequently, the company's financial results were adversely affected, leading to a significant net loss reported for the fourth quarter and full year of 2024 [2]. Financial Performance - On March 3, 2025, Ready Capital reported a fourth quarter net loss of 2.52 per share for 2024 [3]. - Following the announcement of these losses and the decision to reserve for non-performing loans, Ready Capital's stock price dropped by 5.07 per share [3].