Class Action Lawsuit Filed Against Ready Capital Corporation: A Detailed Explanation
On April 11, 2025, Levi & Korsinsky, LLP announced the filing of a class action securities lawsuit against Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC). The lawsuit alleges securities fraud against the Company and seeks to recover losses on behalf of investors who were adversely affected between November 7, 2024, and March 2, 2025.
Class Definition
The class definition includes all persons or entities who purchased or otherwise acquired securities of Ready Capital Corporation during the period from November 7, 2024, to March 2, 2025. The plaintiffs allege that the defendants made false and/or misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and financial condition.
Allegations of Securities Fraud
According to the complaint, the defendants made false and misleading statements regarding the Company’s financial condition and revenue growth. Specifically, the complaint alleges that the defendants misrepresented the Company’s revenue growth and failed to disclose that the Company’s revenue growth was due to the acquisition of certain assets and not organic growth. Furthermore, the complaint alleges that the defendants failed to disclose the risks associated with the Company’s business model and the impact of regulatory changes on the Company’s business.
Effect on Individual Investors
If the allegations of the complaint are proven, individual investors who purchased or otherwise acquired Ready Capital Corporation securities during the class period may be entitled to recover their losses. The amount of damages each investor may recover will depend on the specific facts and circumstances of their investment.
Effect on the World
The filing of this class action lawsuit against Ready Capital Corporation may have a ripple effect on the financial markets, particularly in the real estate investment trust (REIT) sector. The outcome of this lawsuit could potentially impact investor confidence in the REIT sector and lead to increased scrutiny of other companies in the industry. Additionally, if the allegations are proven, it could result in increased regulatory oversight of the REIT sector and potential changes to securities laws.
Conclusion
The filing of this class action securities lawsuit against Ready Capital Corporation is a significant development for investors in the Company. The allegations of securities fraud, if proven, could result in substantial damages for affected investors. Furthermore, the outcome of this lawsuit could have wider implications for the financial markets and the REIT sector as a whole. As the case progresses, investors are encouraged to monitor developments closely and consult with their financial advisors.
- Levi & Korsinsky, LLP files class action securities lawsuit against Ready Capital Corporation
- Allegations of securities fraud between November 7, 2024, and March 2, 2025
- Class definition includes all persons or entities who purchased or otherwise acquired securities of Ready Capital Corporation during the class period
- Potential damages for affected investors if allegations are proven
- Implications for the financial markets and the REIT sector as a whole
