SLM Faces Securities Class Action Over Delinquency Disclosures as Firms Seek Lead Plaintiff
A TD Cowen note highlighting a larger‑than‑seasonal July rise in delinquencies preceded an approximate 8% slide in SLM shares.
Overview
- The putative class action, Zappia v. SLM Corporation, No. 25‑cv‑18834 (D.N.J.), covers investors who purchased SLM securities from July 25 to August 14, 2025.
- Plaintiffs allege SLM and certain executives concealed a significant increase in early‑stage private education loan delinquencies and overstated the effectiveness of loss‑mitigation and loan‑modification programs.
- The complaint points to late‑July remarks by CFO Peter M. Graham describing delinquency trends as normal, which it says were contradicted by an August 14, 2025 TD Cowen report showing a 49‑basis‑point month‑over‑month jump in July delinquencies.
- Following publication of the research, SLM’s stock declined by roughly 8%, which the lawsuit alleges reflects investor losses tied to the purported misstatements.
- Robbins Geller, the Schall Law Firm, DJS Law Group, and The Gross Law Firm are recruiting lead‑plaintiff candidates ahead of a February 17, 2026 deadline, and the class has not been certified.