Ready Capital Class Action Lawsuit: Impact on Investors and the World
On April 15, 2025, Robbins Geller Rudman & Dowd LLP announced the filing of a class action lawsuit against Ready Capital Corporation (Ready Capital) in the United States District Court for the Southern District of California. The lawsuit, captioned Quinn v. Ready Capital Corporation, alleges that Ready Capital and certain of its executives violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making false and misleading statements regarding the company’s financial condition and business practices.
Impact on Individual Investors
If you invested in Ready Capital securities during the Class Period, which is between March 3, 2021, and October 26, 2022, you may be entitled to join the class action and seek damages. The lawsuit alleges that the defendants made materially false and misleading statements regarding Ready Capital’s financial condition and business practices, which artificially inflated the price of the company’s securities. As a result of the defendants’ misstatements, investors suffered significant losses.
Impact on the World
The filing of the Ready Capital class action lawsuit is significant because it highlights the importance of transparency and accuracy in corporate reporting. The allegations against Ready Capital and its executives, if proven true, could have far-reaching consequences. The lawsuit could lead to increased scrutiny of the business practices of other financial institutions and could result in stricter regulations and oversight in the industry.
Additional Information from Online Sources
According to a report by Reuters, the lawsuit alleges that Ready Capital misrepresented its loan underwriting standards and failed to disclose the extent of its exposure to distressed and risky loans. The lawsuit also alleges that Ready Capital failed to disclose the true nature of its relationship with certain loan originators.
The Securities and Exchange Commission (SEC) has also reportedly launched an investigation into Ready Capital’s business practices. The SEC is looking into whether the company violated securities laws by making false and misleading statements about its loan underwriting standards and the risks associated with its loan portfolio.
Conclusion
The filing of the Ready Capital class action lawsuit is a reminder of the importance of transparency and accuracy in corporate reporting. The allegations against Ready Capital and its executives, if proven true, could have significant consequences for individual investors and the financial industry as a whole. As the SEC investigation continues, it will be important to monitor developments in this case closely.
- Robbins Geller Rudman & Dowd LLP files class action lawsuit against Ready Capital Corporation
- Allegations include violations of Securities Act of 1933 and Securities Exchange Act of 1934
- Class Period is between March 3, 2021, and October 26, 2022
- Impact on individual investors: potential for damages if invested during Class Period
- Impact on the world: potential for increased scrutiny and stricter regulations in the financial industry
- Additional information: Reuters report on allegations against Ready Capital and SEC investigation
