Robbins LLP Issues Warning for SLM Corporation Investors About Class Action Lawsuit
SLM Corporation Class Action Lawsuit Overview
On December 24, 2025, Robbins LLP issued an important reminder to stockholders regarding a pending class action lawsuit against SLM Corporation, better known as Sallie Mae. This legal action is focused on claims made by investors who purchased securities during a specified period, from July 25, 2025, to August 14, 2025. The stakes are high as the allegations against SLM Corporation suggest significant misrepresentation concerning its private education loan (PEL) delinquency rates.
The Allegations Against SLM Corporation
The allegations stemming from the lawsuit assert that SLM Corporation misled investors regarding the performance and stability of its loan modification programs. Specifically, the claim highlights two crucial factors:
1. Failure to Disclose Delinquency Rates: During the class period, SLM allegedly experienced a worrying increase in early-stage delinquencies among borrowers, a factor not disclosed to investors.
2. Overstated Program Effectiveness: The lawsuit contends that SLM overstated the efficacy of its loss mitigation and loan modification strategies, leading to an inflated perception of the company’s operational health.
On August 14, 2025, TD Cowen, an investment bank, published a report revealing that delinquency rates for July 2025 had soared by 49 basis points month-over-month, contradicting SLM's earlier assurances that these rates were in line with seasonal expectations. Following this revelation, SLM's share price took a notable hit, plummeting by $2.67 per share, or approximately 8.09%, settling at $30.32 per share on August 15, 2025.
Implications for Investors
The class action presents potential avenues for recovery for investors adversely affected by SLM's alleged misrepresentations. Those who invested in SLM shares during the defined period may qualify to participate as lead plaintiff in the ongoing litigation. In this role, they would act on behalf of other class members, directing the legal proceedings.
Robbins LLP has emphasized that participation in the class action is not a prerequisite for eligibility in potential recoveries. Investors who prefer not to actively engage can remain class members without any obligation. Legal representation is provided on a contingency fee basis, alleviating any financial burden for plaintiffs.
About Robbins LLP
Robbins LLP has carved a niche for itself as a leader in shareholder rights advocacy, assisting investors since 2002 in reclaiming losses and promoting corporate accountability. The firm remains vigilant in protecting investor interests against corporate misconduct.
For individuals interested in following the developments of this class action or those wishing to receive free alerts regarding corporate wrongdoing, Robbins LLP offers subscriptions to their Stock Watch service.
In conclusion, SLM Corporation investors should remain informed and consider their options regarding the ongoing class action lawsuit. For further details, stockholders are encouraged to connect with Robbins LLP directly, whether through a submission form, email, or by calling their dedicated line at (800) 350-6003. Stay aware, as the outcomes of this litigation could have significant repercussions for your financial investments.