Ready Capital (US:RC) GlobeNewswire News Room·2025-04-25 11:36Core Viewpoint - A lawsuit has been filed against Ready Capital Corporation and its senior executives for potential violations of federal securities laws, focusing on misrepresentation of the company's financial health due to non-performing loans [1][2]. Group 1: Lawsuit Details - The lawsuit is filed in the U.S. District Court for the Southern District of New York, under the case name Goebel v. Ready Capital Corporation, No. 25-cv-3373, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [2]. - Investors have until May 5, 2025, to request to be appointed to lead the case [2]. Group 2: Company Overview - Ready Capital 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, and other real estate-related investments [3]. Group 3: Allegations - The lawsuit alleges that the defendants misrepresented the impact of significant non-performing loans in Ready Capital's commercial real estate portfolio, which were adversely affecting the company's financial performance and were unlikely to be collectible [4]. - The financial results were claimed to be materially false and misleading due to inaccurate reflection of these non-performing loans in the company's current expected credit loss (CECL) and valuation allowances [4]. Group 4: Financial Impact - On March 3, 2025, Ready Capital announced a financial charge of $382 million, which included $284 million related to CECL and valuation allowances on non-performing loans, and a reduction in its dividend to $0.125 per share [5]. - Following this announcement, Ready Capital's stock price fell nearly 27%, from $6.93 per share on February 28, 2025, to $5.07 per share on March 3, 2025 [6].