Class Action Lawsuit Filed Against Ready Capital Corporation: What Does It Mean for Investors and the World?
New York, NY – March 9, 2025 – In a significant development for the financial industry, Bronstein, Gewirtz & Grossman, LLC, a leading national law firm, has announced the filing of a class action lawsuit against Ready Capital Corporation (“Ready Capital” or “the Company”) (NYSE: RC) and certain of its officers. The complaint alleges securities fraud and violations of the Securities Exchange Act of 1934.
The Lawsuit: Allegations and Parties Involved
The lawsuit, filed in the United States District Court for the Southern District of New York, alleges that Ready Capital and its officers made false and misleading statements regarding the Company’s financial condition, business prospects, and compliance with regulatory requirements. Specifically, the complaint alleges that the defendants failed to disclose material information concerning the Company’s exposure to certain commercial mortgage-backed securities (“CMBS”) and related risks.
Impact on Investors
The lawsuit could have significant implications for investors who purchased Ready Capital’s securities between February 28, 2022, and November 1, 2022. If the allegations are proven true, these investors may be entitled to compensation for their losses. The lawsuit seeks to recover damages on behalf of all such investors.
Impact on the World
Beyond the immediate impact on Ready Capital investors, the lawsuit could have broader implications for the financial industry. The allegations of misrepresentation and non-disclosure could raise concerns about the transparency and accuracy of financial reporting, particularly in the CMBS market. Additionally, the lawsuit may increase scrutiny of other companies with similar business models and exposure to CMBS.
What’s Next?
The lawsuit is in its early stages, and it remains to be seen how it will unfold. Ready Capital and its officers have not yet responded to the allegations, and the Company has not issued a public statement regarding the lawsuit. The case is expected to proceed through the discovery process, with potential depositions, document production, and other pre-trial activities. Ultimately, the case could be resolved through a settlement or trial.
Conclusion
The filing of a class action lawsuit against Ready Capital Corporation and its officers is a significant development for the financial industry. The allegations of securities fraud and violations of the Securities Exchange Act of 1934 could have significant implications for investors who purchased Ready Capital securities between February 28, 2022, and November 1, 2022. The lawsuit also raises concerns about the transparency and accuracy of financial reporting in the CMBS market and could increase scrutiny of other companies with similar business models and exposure to CMBS. As the case unfolds, investors and industry observers will be closely watching for developments.
- Bronstein, Gewirtz & Grossman, LLC files class action lawsuit against Ready Capital Corporation and certain officers.
- Allegations of securities fraud and violations of the Securities Exchange Act of 1934.
- Impact on investors who purchased Ready Capital securities between February 28, 2022, and November 1, 2022.
- Raises concerns about transparency and accuracy of financial reporting in CMBS market.
- Case expected to proceed through discovery process.
