#USA #New York #Faruqi & Faruqi #Investor Claims #SLM Corporation

Overview

Faruqi & Faruqi, LLP, a prominent national law firm specializing in securities litigation, has initiated an investigation into potential claims on behalf of investors of SLM Corporation. This scrutiny comes following allegations that the Company and its executives may have violated federal securities laws through misleading statements and omissions regarding their financial practices. Investors who purchased SLM’s securities between July 25, 2025, and August 14, 2025, are urged to evaluate their legal options, particularly given the upcoming deadlines for legal action.

Background on SLM Corporation

SLM Corporation, commonly referred to as SLM, operates within the realm of financial services, predominantly focusing on student loans and education financing. The company has garnered attention due to its public positioning and various business undertakings in this sector. However, recent developments have raised serious questions about the integrity of its financial disclosures, prompting the legal inquiry from Faruqi & Faruqi.

Allegations of Misconduct

The firm’s investigation stems from a complaint indicating that SLM experienced an alarming rise in early-stage delinquencies, contradicting previous reassurances made to investors. The claims suggest that the company overstated the efficacy of its loss mitigation and loan modification programs, leading to a deceptive portrayal of its stability and financial health.

On August 14, 2025, investment bank TD Cowen put forward a report indicating that delinquency rates had risen significantly—by 49 basis points month-over-month—compared to a historically typical increase of just 10 basis points for July. This report struck a blow to SLM's prior claims that delinquency rates were adhering to normal seasonal trends, resulting in a notable drop in the company’s stock price, which plunged nearly 8% following the announcement.

Legal Implications

The implications of these findings are profound for both SLM Corporation and its investors. A group of shareholders is currently moving forward with a federal securities class action against the company, and the law firm has emphasized the importance of appointing a lead plaintiff in this case. The lead plaintiff plays a critical role in guiding the litigation on behalf of the broader group of affected investors, thus underscoring the stakes involved in this lawsuit.

Call to Action for Investors

Faruqi & Faruqi encourages any affected investors to come forward, particularly those who have pertinent information regarding the company’s practices. This includes ex-employees, whistleblowers, and other stakeholders. Interested parties are urged to connect with the firm to discuss their rights and potential legal avenues of recourse.

Conclusion

As the investigation unfolds, all eyes are on SLM Corporation and how these allegations will impact both its share price and its operations going forward. Investors are reminded to stay informed about their rights and the ongoing developments in this case, especially with the class action's lead plaintiff deadline approaching on February 17, 2026. For more information, investors should visit the dedicated page on the Faruqi & Faruqi website or contact them directly. Staying engaged with these legal proceedings could prove essential for recovering potential losses.

Contact Information

For further details, SLM investors can reach out to James (Josh) Wilson of Faruqi & Faruqi at 877-247-4292 or through their website. This class action serves as a crucial opportunity for shareholders to seek justice and accountability from the company.