Faruqi & Faruqi Reminds Ready Capital Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 5, 2025 - RC

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Ready Capital Corporation due to significant losses reported by investors, particularly related to misleading statements and undisclosed financial issues [2][4]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses exceeding $50,000 in Ready Capital between November 7, 2024, and March 2, 2025, to discuss their legal options [1][2]. - A federal securities class action has been filed against Ready Capital, with a deadline of May 5, 2025, for investors to seek the role of lead plaintiff [2][7]. Group 2: Financial Performance and Issues - Ready Capital reported a fourth quarter 2024 net loss of $1.80 per share and a full year 2024 net loss of $2.52 per share, necessitating decisive actions to stabilize its balance sheet [5]. - The company took $284 million in combined Current Expected Credit Loss (CECL) and valuation allowances to address non-performing loans in its commercial real estate (CRE) portfolio [5]. - Total leverage increased to 3.8x from the previous quarter's 3.3x, indicating a deterioration in financial stability [5]. Group 3: Market Reaction - Following the announcement of its financial results, Ready Capital's stock price fell by $1.86, or 26.8%, closing at $5.07 per share on March 3, 2025, amid unusually heavy trading volume [6].