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Published April 14, 2025
Ready Capital’s investors weren’t ready for this bad news like this. In March, the real estate investment company announced it wrote off hundreds of millions of dollars in bad debt. Irate investors rushed for the exits, causing RC’s stock price to crash. Now, those investors are fighting back with a class-action lawsuit.
In November 2024, Ready Capital announced amazing financial results. Its CEO bragged about the Company’s strong debt position and the strength of Ready’s commercial real estate portfolio. The Company also said it regularly checked credit quality when updating the Company’s financials.
Perhaps Ready should have double-checked. In March 2025, the Company shocked investors when it revealed it had to write off $284 million in bad debt, mostly from commercial real estate. This move cost investors about $2.50/share. The Company also said it had to take other “decisive actions” to stabilize its balance sheet.
Furious investors quickly sold off their shares and RC stock plunged 26.8% overnight.