Faruqi & Faruqi, LLP Launches Investigation into SLM Corporation for Investor Claims

In a significant development for investors, the well-known securities law firm Faruqi & Faruqi, LLP has announced an investigation into SLM Corporation, commonly referred to as SLM. This investigation is focused on potential claims arising from significant losses that investors may have incurred. According to statements from Faruqi & Faruqi, the firm aims to guide investors who bought or acquired SLM’s securities between July 25 and August 14, 2025, during a time when crucial financial information may not have been disclosed in a transparent manner.

As reported, it appears that the executives of SLM could have violated federal securities laws by making misleading statements that painted a false picture of the company’s financial health. Specifically, the allegations state that SLM was facing considerable increases in early-stage delinquencies, which executives failed to disclose adequately. This kind of oversight can significantly impact investor decisions and leads to a lack of trust and confidence in the market.

Moreover, a report released by investment bank TD Cowen on August 14, 2025, pointed out a concerning trend where SLM’s delinquency rates increased sharply—by 49 basis points month-on-month, contrary to the assurances provided by SLM’s executives just weeks prior. This contradiction in information raises serious questions about the reliability of the statements made by SLM's management and highlights the importance of transparency in corporate communications.

Following the TD Cowen report, SLM's stock experienced a noteworthy decline, dropping by $2.67 per share, which equates to a drop of 8.09%, leading to a closing price of $30.32 on August 15, 2025. Such market reactions reinforce the impact that hidden risks can have on investor portfolios, propelling the need for legal recourse and investigation.

Faruqi & Faruqi is inviting any shareholders who believe they have experienced losses linked to these alleged misstatements to reach out for a discussion about their legal rights. The firm has a history of recovering substantial amounts for its clients and operates offices in major locations including New York, Pennsylvania, California, and Georgia. Investors have until February 17, 2026, to seek the lead plaintiff role in the recently initiated federal securities class action against SLM, which positions the lead plaintiff as a key figure in managing the litigation process on behalf of the affected class.

It is also noteworthy that the role of lead plaintiff is typically filled by the investor with the largest financial stake in the relief sought by the class who is deemed representative of common interests. This structure is designed to ensure that the lawsuit remains focused on the needs and rights of all investors involved.

For anyone who may have relevant information regarding SLM’s operations and communications, including whistleblowers and former employees, Faruqi & Faruqi encourages reaching out. The firm emphasizes the importance of protecting whistleblower identities and assures confidentiality in all communications.

Faruqi & Faruqi's commitment to investor rights and its proactive approach in investigating potential securities fraud underline the crucial role that legal advisement can play in safeguarding shareholder interests. Investors are urged to remain vigilant, informed, and ready to act upon substantiated claims against deceptive corporate practices.

Topics Financial Services & Investing)

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