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

Investigation of SLM Corporation by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent national securities law firm, has embarked on an investigation concerning potential claims against SLM Corporation. This investigation primarily focuses on allegations of federal securities law violations, where executives allegedly provided misleading information to investors. The investigation has been prompted by a significant rise in early-stage delinquencies within SLM's operations, raising concerns among stakeholders.

Background of SLM Corporation

SLM Corporation, commonly known by its ticker symbol SLM on NASDAQ, has been a significant player in the financial services sector, particularly in student loan financing. However, recent reports have indicated troubling patterns within the company’s financial health, specifically a spike in delinquencies that have not been adequately communicated to investors.

The period under investigation spans from July 25, 2025, to August 14, 2025, which includes crucial corporate announcements and the subsequent stock market reactions. Notably, on August 14, 2025, investment bank TD Cowen released a report highlighting that delinquencies for July 2025 were up 49 basis points month-over-month—exceeding seasonal trends, thereby contradicting prior assurances made by SLM's executives.

Allegations Against SLM Executives

The crux of the investigation involves allegations that SLM’s executives violated federal securities laws by failing to disclose material information related to the increasing delinquency rates. This included overstating the effectiveness of their loss mitigation programs and giving a misleadingly positive representation of the company’s stability. The reported increase in delinquencies, particularly early-stage defaults, indicates potential risks that were not communicated to investors, which could affect the overall business outlook for SLM.

Following the TD Cowen report, SLM’s stock price plummeted by $2.67 per share, an alarming 8.09% drop, signaling the market's reaction to the new information about the company's financial distress. This decline in stock price appears to align with assertions that investors were misled by the company’s previous statements about delinquency expectations, which were painted as consistent with historical trends.

Legal Actions and The Role of Investors

In light of these developments, Faruqi & Faruqi has notified investors about the upcoming February 17, 2026, deadline for those who suffered financial losses during the mentioned period to potentially take on the role of lead plaintiff in a federal class action lawsuit against the company. The lead plaintiff is provided a unique opportunity to guide litigation efforts and represents the interests of the entire investor class engaged in the lawsuit.

Faruqi & Faruqi invites any affected investors, as well as whistleblowers or former employees with pertinent information regarding SLM's conduct, to participate in this investigation and to understand their legal rights. This outreach emphasizes the firm's commitment to ensuring investor protection and accountability for corporate misconduct.

Conclusion

Amid these ongoing investigations, SLM Corporation's future hangs in the balance as stakeholders await further developments. With a robust legal team such as Faruqi & Faruqi advocating for transparency and accountability, investors are encouraged to remain informed about their rights and options available to seek potential redress for losses incurred during this tumultuous period. For additional details about the class-action lawsuit or if you wish to discuss your case, reach out directly at their provided contacts. The importance of investor vigilance cannot be overstated in today’s financial climate, where corporate accountability is paramount to restoring trust within the investment community.