Sallie Mae Securities Class Action Lawsuit
Class Action Lawsuit Alleges Violations of Federal Securities Laws
Girard Gibbs serves as lead counsel representing investors of SLM Corporation ("Sallie Mae") in litigation alleging that Sallie Mae, the leading provider of student loans in the United States, misled the public about its financial performance in order to inflate the company’s stock price.
Specifically, the lawsuit alleges that between 2007 and 2008, Sallie Mae violated federal securities laws by concealing from the public that it had:
- Lowered the standards it used to qualify borrowers in order to increase its portfolio of lucrative private loans,
- Hid borrower defaults from the public by changing its loan forbearance policy, and
- Maintained inadequate reserves to compensate for potential loan losses in order to inflate profits.
The lawsuit alleges that the investors ultimately suffered investment losses when Sallie Mae’s stock price fell after the company’s true financial condition was revealed.
Sallie Mae Class Action: Class Certified
On January 24, 2012, the Court formally certified the case against Sallie Mae as a class action, allowing it to proceed on behalf of all investors who purchased common shares of SLM Corporation between January 18, 2007 and January 23, 2008, and who possessed any of those shares over one or more of the dates of December 19, 2007, January 3, 2008 and January 23, 2008.
>>View Order Granting Class Certification
Questions about the Sallie Mae Securities Class Action Lawsuit?
To speak with our securities fraud attorneys call (866) 981-4800 or fill out the form to the right to receive email updates about the progress of the case.
Why Girard Gibbs LLP?
Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.
 |
 |
 |
|---|
Girard Gibbs Appointed as Lead Counsel
In April 2009, Honorable William Pauley of the Southern District of New York issued an order appointing Girard Gibbs as Lead Counsel representing investors of SLM Corp (Ticker Symbol- NASDAQ: SLM).
Order Appointing Girard Gibbs as Lead Counsel
Girard Gibbs Defeats Defendants’ Motion to Dismiss
In September 2010, the Court ruled that the plaintiffs’ claims against SLM Corporation and the Company chairman were sufficient to overcome the defendants’ motion to dismiss.
Order Denying Defendants' Motion to Dismiss
