Class Action Lawsuit Filed Against Sallie Mae Over Alleged Disclosure Failures

GlobeNewswire Inc.GlobeNewswire Inc.
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Key Takeaway

Sallie Mae faces class action lawsuit for allegedly failing to disclose rising loan delinquencies and overstating loss mitigation effectiveness, misleading investors about financial health.

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 issued materially false and misleading statements regarding its business operations during July and August 2025. According to the complaint filed by Bronstein, Gewirtz & Grossman LLC, the student loan servicing company failed to disclose significant increases in early-stage loan delinquencies while simultaneously overstating the effectiveness of its loss mitigation programs, potentially misleading investors about the company's financial health and operational performance.

The lawsuit asserts that SLM's alleged misrepresentations artificially inflated the company's stock price during the class period, resulting in financial harm to investors who purchased securities at inflated valuations. The complaint contends that the company possessed material information regarding deteriorating loan performance metrics that should have been disclosed to the market in accordance with securities regulations.

Investors who purchased SLM Corporation securities during the specified period are being encouraged to evaluate their legal options and consider participation in the class action. The case raises questions about disclosure practices within the student loan servicing sector and the adequacy of risk communications to the investment community during periods of operational stress.

Source: GlobeNewswire Inc.

Back to newsPublished Feb 13

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