Class Action Lawsuit Filed Against Ready Capital Corporation: What Does It Mean for Investors and the World?
New York, NY – March 31, 2025
Pomerantz LLP, a leading securities law firm, has announced the filing of a class action lawsuit against Ready Capital Corporation (“Ready” or the “Company”) (NYSE: RC). The complaint was filed in the United States District Court for the Southern District of New York and alleges that Ready and certain of its top executives violated the Securities Exchange Act of 1934.
Allegations Against Ready Capital Corporation
The class action lawsuit alleges that Ready and its executives made false and misleading statements regarding the Company’s financial condition and business prospects. Specifically, the complaint alleges that Ready failed to disclose material information related to its mortgage loan portfolio, including the level of delinquencies and the risk of losses. The lawsuit also alleges that the Company’s executives made false and misleading statements about Ready’s ability to originate and sell new mortgage loans, as well as its liquidity and financial condition.
Impact on Investors
The class action lawsuit is significant for investors in Ready Capital Corporation. The allegations, if proven true, could result in substantial damages for investors who purchased the Company’s securities between certain dates. Specifically, the lawsuit seeks to recover damages for investors who purchased Ready’s securities between February 25, 2021, and March 25, 2025. This period covers the time when the alleged misstatements were made.
Impact on the World
The impact of the class action lawsuit against Ready Capital Corporation extends beyond just the Company and its investors. The lawsuit raises concerns about the broader mortgage lending industry and the risks associated with mortgage-backed securities. The allegations of misstatements and hidden risks in Ready’s mortgage loan portfolio could lead to increased scrutiny of other mortgage lenders and their disclosure practices. This, in turn, could lead to increased volatility in the mortgage-backed securities market and potentially even broader market disruptions.
Conclusion
The filing of a class action lawsuit against Ready Capital Corporation is a serious development for investors in the Company and for the mortgage lending industry as a whole. The allegations of misstatements and hidden risks in Ready’s mortgage loan portfolio could result in significant damages for investors and increased scrutiny of other mortgage lenders. As the lawsuit progresses, it will be important for investors to stay informed about developments and potential implications for their investments. For the broader market, the lawsuit underscores the importance of transparency and accurate disclosure in the mortgage lending industry and the potential risks associated with mortgage-backed securities.
- Pomerantz LLP files class action lawsuit against Ready Capital Corporation
- Allegations of false and misleading statements regarding financial condition and business prospects
- Impact on investors: potential damages for those who purchased securities between February 25, 2021, and March 25, 2025
- Impact on the world: increased scrutiny of mortgage lenders and potential market disruptions
- Stay informed about developments and potential implications for investments
