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2w ago

SLM Securities Class Action Enters Lead-Plaintiff Phase Ahead of Feb. 17 Deadline

The suit claims Sallie Mae misled investors on rising early-stage delinquencies, overstating loss-mitigation efficacy.

Overview

  • The putative class action, Zappia v. SLM Corporation (No. 25-cv-18834), is filed in the U.S. District Court for the District of New Jersey.
  • The class period runs from July 25, 2025 through August 14, 2025, with motions for lead plaintiff due February 17, 2026.
  • The complaint cites Sections 10(b) and 20(a) and Rule 10b-5, alleging undisclosed deterioration in private education loan delinquency trends.
  • A TD Cowen note on August 14, 2025 reported July delinquencies up 49 bps month over month, driven by a 45 bp rise in early-stage delinquencies, after prior reassurances from CFO Peter M. Graham in late July.
  • The filing alleges SLM shares fell about 8% on August 15, 2025 after the report; multiple firms are soliciting investors for lead-plaintiff roles, and no class has been certified.