Sallie Mae Investors Face Feb. 17 Deadline to Seek Lead in Securities Fraud Suit
The New Jersey case alleges SLM understated rising early‑stage delinquencies following a TD Cowen finding that preceded an 8% share decline.
Overview
- The putative class action, captioned Zappia v. SLM Corporation, No. 25-cv-18834, is pending in the U.S. District Court for the District of New Jersey and no class has been certified.
- Investors have until February 17, 2026 to ask the court to be appointed lead plaintiff, with firms including Pomerantz, Robbins Geller, and Kirby McInerney soliciting candidates.
- The proposed class covers purchasers of SLM securities from July 25, 2025 through August 14, 2025, inclusive.
- The complaint alleges SLM failed to disclose a significant rise in early‑stage delinquencies and overstated the effectiveness of its loss‑mitigation and loan‑modification programs.
- A TD Cowen report on August 14, 2025 flagged July delinquencies up 49 bps month over month, driven by a 45 bps increase in early‑stage delinquencies, which allegedly contradicted late‑July remarks by CFO Peter M. Graham and was followed by an approximately 8% stock drop to $30.32 on August 15.