Class Action Lawsuit Filed Against Sallie Mae Over Alleged Disclosure Failures

GlobeNewswire Inc.GlobeNewswire Inc.
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Key Takeaway

Class action lawsuit filed against Sallie Mae for allegedly concealing loan delinquency increases and overstating loss mitigation effectiveness, artificially inflating stock prices during July-August 2025.

Class Action Lawsuit Filed Against Sallie Mae Over Alleged Disclosure Failures

A class action lawsuit has been initiated against SLM Corporation, commonly known as Sallie Mae, alleging the company made materially false and misleading statements regarding its operational performance. According to the complaint, the student loan servicer concealed a significant increase in early-stage loan delinquencies while simultaneously overstating the effectiveness of its loss mitigation programs during a critical period in late July and early August 2025.

The legal action targets a specific trading window between July 25 and August 14, 2025, during which the company's stock price was allegedly artificially elevated due to the undisclosed information. The complaint contends that investors who purchased SLM securities during this timeframe were harmed by the company's failure to provide accurate and complete disclosure regarding loan performance metrics and risk mitigation effectiveness.

Investors who acquired Sallie Mae shares during the specified period are being encouraged to participate in the class action proceeding. Legal counsel is reviewing the allegations and the scope of potential investor damages related to the securities purchases made during the window when the company's financial condition was reportedly misrepresented to the market.

Source: GlobeNewswire Inc.

Back to newsPublished Feb 17

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