Attention Investors: Important Information Regarding the Securities Class Action Lawsuit Against Ready Capital Corporation
On March 11, 2025, Kahn Swick & Foti, LLC (“KSF”) and its partner, former Attorney General of Louisiana, Charles C. Foti, Jr., issued a reminder to investors concerning the securities class action lawsuit against Ready Capital Corporation (NYSE: RC). The lawsuit alleges that the Company and certain of its executives violated federal securities laws by making false and misleading statements to the market during the Class Period, which lasted from November 7, 2024, to March 2, 2025.
What Happened During the Class Period?
According to the complaint, Ready Capital Corporation made false and/or misleading statements and/or failed to disclose that:
- The Company’s financial results were negatively impacted by increased competition and higher interest rates;
- The Company was experiencing significant declines in origination volumes;
- The Company’s loan underwriting standards had weakened, resulting in an increased risk of loan defaults;
- The Company was experiencing significant challenges in its multifamily lending business;
As a result of these false and misleading statements, Ready Capital Corporation’s shares traded at artificially inflated prices during the Class Period.
How Will This Affect Me?
If you purchased Ready Capital Corporation shares between November 7, 2024, and March 2, 2025, you may be eligible to recover your losses, as a member of the securities class action. The lead plaintiff deadline to file a motion for appointment as the representative of the class is May 5, 2025.
If you wish to serve as the lead plaintiff, you must meet certain legal requirements. To be eligible, you must be a member of the class and incurred damages as a result of purchasing Ready Capital Corporation shares during the Class Period. You may, however, retain KSF or other counsel of your choice to serve as your counsel in this action.
How Will This Affect the World?
The securities class action lawsuit against Ready Capital Corporation is significant because it highlights the importance of transparency and honesty in the financial markets. Companies have a responsibility to provide accurate and truthful information to their investors. When they fail to do so, investors can suffer financial losses.
Moreover, securities class action lawsuits can lead to corporate governance improvements and increased shareholder value. For example, companies may adopt more stringent financial reporting practices or strengthen their internal controls to prevent future misstatements.
Conclusion
If you purchased Ready Capital Corporation shares between November 7, 2024, and March 2, 2025, and believe that you have suffered losses as a result, you may be eligible to recover your damages. The lead plaintiff deadline to file a motion for appointment as the representative of the class is May 5, 2025. For more information, contact Kahn Swick & Foti, LLC.
This securities class action lawsuit serves as a reminder that companies must provide truthful and accurate information to their investors. The financial markets rely on honest reporting, and when that trust is breached, investors can suffer significant losses. Stay informed and protect your investments.
