Ready Capital (RC) Faces Investor Backlash as Lawsuit Alleges Concealed CRE Loan Woes– Hagens Berman

Core Viewpoint - Ready Capital Corporation is facing increased investor scrutiny due to a securities class-action lawsuit that questions its financial reporting and has led to a significant drop in its stock price [1][5]. Financial Performance - Ready Capital reported a fourth-quarter net loss of $1.80 per share and a full-year loss of$2.52 per share for 2024, attributing these losses to a $284 million reserve for underperforming commercial real estate (CRE) loans [4]. - The company also halved its quarterly dividend and experienced a sharp decline in book value [4]. Legal Issues - The lawsuit, filed under the case name Quinn v. Ready Capital Corporation, accuses the company and its executives of violating federal securities laws by allegedly downplaying issues in its CRE loan portfolio [2][3]. - Plaintiffs claim that from November 2024 to early March 2025, Ready Capital made misleading statements and omitted critical information regarding non-performing loans and credit loss allowances [3]. Market Reaction - Following the announcement of its financial losses, Ready Capital's shares plummeted nearly 27%, raising concerns about the company's risk management and disclosure practices [5]. Investigation - Hagens Berman, a law firm specializing in corporate accountability, is actively investigating Ready Capital's financial disclosures during the class period and is encouraging affected investors to come forward [6][7].