SLM Investors Face Feb. 17 Deadline in Securities-Fraud Suit Over Delinquency Disclosures
Plaintiff firms are urging shareholders to seek lead-plaintiff status in the New Jersey case alleging Sallie Mae concealed a jump in early-stage loan delinquencies.
Overview
- The case, Zappia v. SLM Corporation (No. 25-cv-18834), is filed in the U.S. District Court for the District of New Jersey alleging violations of the Securities Exchange Act of 1934.
- Multiple investor-rights firms have issued notices recruiting lead-plaintiff candidates before the February 17, 2026 motion deadline, and no class has been certified.
- The putative class covers purchases of SLM securities from July 25, 2025 through August 14, 2025.
- The complaint claims SLM failed to disclose a surge in early-stage private education loan delinquencies and overstated loss-mitigation effectiveness, citing a TD Cowen report that showed July 2025 delinquencies rose 49 bps month over month, led by a 45 bps increase in early-stage delinquencies, which allegedly conflicted with late-July assurances from CFO Peter M. Graham.
- Following the TD Cowen note, SLM shares fell about $2.67, or roughly 8%, to close at $30.32 on August 15, 2025.