Breaking News: Pomerantz LLP Files Class Action Lawsuit Against Ready Capital Corporation
New York City, NY – In an unexpected turn of events, Pomerantz LLP, a renowned securities litigation firm, announced yesterday that a class action lawsuit has been initiated against Ready Capital Corporation (“Ready” or the “Company”) (NYSE:RC).
The Allegations
According to the complaint, filed in the United States District Court for the Southern District of New York, Ready and certain of its executives are charged with violating the Securities Exchange Act of 1934 by making materially false and misleading statements regarding the Company’s financial condition and business prospects.
The Background
Ready Capital Corporation is a real estate investment trust (REIT) that invests in and finances commercial real estate properties. The Company has been publicly traded on the New York Stock Exchange since 2014. In recent years, Ready Capital has been praised for its robust growth and strong financial performance.
The Impact on Investors
The lawsuit alleges that Ready and its executives made false and misleading statements about the Company’s financial condition, specifically regarding its loan portfolio and the adequacy of its loan loss reserves. These statements were made in various SEC filings, press releases, and conference calls between 2019 and 2023.
As a result, investors who purchased or otherwise acquired Ready Capital Corporation securities during the Class Period have suffered significant losses and are encouraged to contact Pomerantz LLP to discuss their legal rights.
The Global Implications
The filing of this lawsuit against Ready Capital Corporation raises concerns for the broader investment community. Real estate investment trusts have become increasingly popular investment vehicles in recent years, with many investors attracted to their relatively stable dividends and potential for capital appreciation. However, this lawsuit serves as a reminder that, like all investments, REITs carry risks.
Moreover, the allegations against Ready Capital Corporation could potentially impact the confidence of investors in the REIT sector as a whole. If these allegations prove to be true, it could lead to increased regulatory scrutiny and potential changes to industry standards.
Looking Ahead
The outcome of this lawsuit remains to be seen. However, it is important for investors to stay informed about developments in the case and to consider the potential implications for their own investment portfolios.
In the meantime, Ready Capital Corporation has not yet responded to the allegations. The Company has 20 days from the filing of the complaint to respond.
Conclusion
Investors in Ready Capital Corporation were taken by surprise yesterday when Pomerantz LLP announced the filing of a class action lawsuit against the Company. The allegations, which include securities fraud, have the potential to significantly impact not only Ready Capital Corporation but also the broader REIT sector. As the situation unfolds, it is essential for investors to stay informed and to consult with their financial advisors to assess the potential implications for their portfolios.
- Pomerantz LLP files class action lawsuit against Ready Capital Corporation
- Allegations include securities fraud
- Impact on investors: potential for significant losses
- Global implications: potential for increased regulatory scrutiny and changes to industry standards
- Outcome of the lawsuit remains to be seen
