Ready Capital Corporation Securities Fraud Lawsuit

A class action securities lawsuit has been filed against Flow Capital Corporation by law firms including Levi & Korsinsky, The Gross Law Firm, and Robbins Geller Rudman & Dowd LLP. The lawsuit alleges that Flow Capital Corporation made false and misleading statements to investors between November 7, 2024, and March 2, 2025, regarding significant non-performing loans in its commercial real estate (CRE) portfolio. The complaint states that these loans were not likely to be collectible and that the company's financial results would be adversely affected, which was not accurately reflected in its credit loss or valuation allowances. On March 3, 2025, Flow Capital Corporation reported a substantial net loss for Q4 2024 and the full year, taking $284 million in allowances to reserve for non-performing loans, which caused its common stock price to fall by nearly 27%. Investors who suffered losses during the specified period have until May 5, 2025, to request to be appointed as lead plaintiff in the lawsuit.