Ready Capital (US:RC) Prnewswireยท2025-04-02 13:31Core Viewpoint - A securities class action lawsuit has been filed against Ready Capital Corporation following the company's poor financial results and revelations about its asset quality, representing investors who purchased shares between November 7, 2024, and March 2, 2025 [1][2]. Financial Performance - Ready Capital reported a quarterly net loss per share of $1.80 and an annual net loss of $2.52 per share for FY 2024, alongside a 50% cut to its quarterly dividend and a 16% reduction in book value [2][4]. - The company recorded a 700% increase in reconciling items totaling approximately $382 million, which included about $277 million in combined CECL and valuation allowances, marking an 8500% increase from the prior-year quarter [3]. Market Reaction - Following the announcement of its financial results on March 3, 2025, Ready Capital's share price plummeted nearly 27% [4]. Legal Allegations - The lawsuit focuses on the accuracy of Ready Capital's statements regarding the quality of its commercial real estate (CRE) loans, CECL reserves, and allowances, especially as the size of its loan portfolio has more than doubled since 2023 [5]. - Allegations include misleading statements about the quality of underwriting, credit monitoring, and the loan portfolio, as well as failure to disclose significant non-performing CRE loans that were unlikely to be collected [6][7].