Core Viewpoint - The SLM Corporation, also known as Sallie Mae, is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company misrepresented its financial stability and the effectiveness of its loan programs during a period of increasing delinquencies [1][3]. Group 1: Class Action Details - Investors in SLM securities from July 25, 2025, to August 14, 2025, can seek appointment as lead plaintiff by February 17, 2026 [1]. - The lawsuit, titled Zappia v. SLM Corporation, accuses SLM and its executives of making false statements and failing to disclose significant increases in early-stage delinquencies [3][4]. - On August 14, 2025, a report from TD Cowen indicated that July 2025 delinquencies rose by 49 basis points month-over-month, contradicting SLM's claims of normal seasonal trends [4]. Group 2: Allegations and Financial Impact - The lawsuit alleges that SLM overstated the effectiveness of its loss mitigation and loan modification programs, leading to a misrepresentation of the overall stability of its private education loan delinquency rates [3]. - Following the TD Cowen report, SLM's stock price dropped by approximately 8%, reflecting investor reaction to the disclosed delinquency issues [4]. Group 3: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows any investor who suffered losses during the class period to seek lead plaintiff status, which involves directing the lawsuit on behalf of all class members [5]. - Robbins Geller Rudman & Dowd LLP, the law firm representing the investors, is recognized as a leading firm in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone [6].
SLM INVESTOR NOTICE: Robbins Geller Rudman & Dowd LLP Announces that SLM Corporation a/k/a Sallie Mae Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit