What's Happening?
Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against SLM Corporation, also known as Sallie Mae, for alleged violations of the Securities Exchange Act of 1934. The lawsuit, filed under the case name Zappia v. SLM Corporation, involves investors who purchased SLM securities between July 25, 2025, and August 14, 2025. The allegations claim that SLM and certain executives made false or misleading statements regarding the company's financial health, particularly concerning an increase in early-stage delinquencies. A report by TD Cowen highlighted a significant rise in delinquencies, contradicting previous statements by SLM's CFO, Peter M. Graham, about stable delinquency rates. Following the report, SLM's stock price dropped
by approximately 8%. Investors have until February 17, 2026, to seek appointment as lead plaintiff in the lawsuit.
Why It's Important?
This lawsuit is significant as it highlights potential mismanagement and misinformation within SLM Corporation, a major player in the private education loan sector. The outcome of this case could have substantial financial implications for the company and its investors. If the allegations are proven, it could lead to a loss of investor confidence and further financial instability for SLM. Additionally, the case underscores the importance of transparency and accuracy in corporate financial reporting, which is crucial for maintaining trust in the financial markets. The lawsuit also serves as a reminder of the legal recourse available to investors who suffer losses due to corporate misconduct.
What's Next?
Investors interested in leading the class action have until February 17, 2026, to file for lead plaintiff status. The lead plaintiff will represent the interests of all class members and can choose the law firm to litigate the case. The legal proceedings will likely involve detailed investigations into SLM's financial practices and the accuracy of its public statements. The case could prompt regulatory scrutiny and potential reforms in how financial disclosures are handled by companies in the education loan industry.
