INVESTOR ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of SLM Corporation

StockNews.AI • 2 days

BearishShort TermLegalTD Cowen

High Materiality7/10

Information

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suff...

AI Summary

Faruqi & Faruqi LLP is investigating potential claims against SLM Corporation due to misleading statements regarding delinquencies and business stability. TD Cowen reported a significant increase in early stage delinquencies, leading to an 8.09% drop in SLM's stock price, highlighting potential legal consequences for the company. Investors affected during the reported period are urged to seek legal counsel.

Trading Thesis

Investors should consider shorting SLM due to ongoing legal issues and declining performance.

Market-Moving

SLM's stock plummeted 8.09% following delinquency reports from TD Cowen.
Increased delinquencies raise concerns about SLM's loan stability.
Ongoing class action may deter new investments in SLM.
Legal ramifications could lead to further stock price volatility.

Key Facts

SLM stock closed at $30.32 after the price drop.
The class action has a February 17, 2026 deadline for lead plaintiff applications.
Delinquencies rose by 49 basis points month-over-month in July 2025.

Companies Mentioned

SLM Corporation (SLM): Under investigation for misleading investors about financial health.
TD Cowen (TD Cowen): Highlighted delinquency issues impacting SLM's market perception.

Legal

The investigation into SLM Corporation falls under securities litigation, impacting investor confidence and company stocks. Such legal challenges can cause prolonged stock price pressure as investors react to potential liabilities and corporate governance issues.

FAQ

Why Bearish?

SLM’s substantial stock price drop indicates strong negative market sentiment due to the revelations of increased delinquency rates and ongoing litigation. Historically, companies involved in securities lawsuits often experience prolonged declines until the matter is resolved, as seen with similar cases in the financial sector.

How important is it?

The potential class action lawsuit combined with recent reports of delinquency increases significantly impacts SLM's financial outlook, making it a critical issue for investors. The high-profile nature of securities litigation also adds to its relevance in financial circles.

Why Short Term?

The immediate impact on SLM's stock price is driven by the current sentiment around legal actions, which tends to influence stock performance right away. As more information unfolds and litigation progresses, volatility will likely continue in the short term.

Related Companies

TD Cowen

Faruqi & Faruqi, LLP Investigates SLM Corporation: Legal Options for Affected Investors

Faruqi & Faruqi, LLP, a prominent securities law firm, is urging investors who suffered losses from SLM Corporation (NASDAQ: SLM) to explore their legal options. The investigation focuses on claims related to potential violations of federal securities laws during the period between July 25, 2025, and August 14, 2025. Investors are reminded of the February 17, 2026, deadline to apply for lead plaintiff status in a federal securities class action lawsuit against the company.

Details of the Investigation

The investigation centers on allegations that SLM Corporation and its executives engaged in misleading practices that affected investors. The complaint asserts that:

SLM experienced a significant surge in early-stage delinquencies.
Defendants overstated the efficacy of SLM's loss mitigation and loan modification programs.
Public statements from the company misrepresented SLM's business stability and operational health.

Impact on SLM’s Stock Performance

On August 14, 2025, TD Cowen, an investment bank, released a report highlighting that SLM's delinquencies rose by 49 basis points month-over-month, which was significantly higher than the expected seasonal increase of 10 basis points. This increase was driven by a notable 45 basis points rise in early-stage delinquencies. This report contradicted SLM's prior assurances regarding delinquency trends, leading to a significant decline in SLM’s stock price.

Following the publication of the TD Cowen report, SLM's stock fell by $2.67 per share, or 8.09%, to close at $30.32 per share on August 15, 2025.

Lead Plaintiff Information

A lead plaintiff in the class action lawsuit is identified as the investor with the largest financial stake who can adequately represent the interests of the class. Investors wishing to take on this role may seek counsel or choose to maintain their status as absent class members without affecting their claims to any recovery.

Faruqi & Faruqi, LLP encourages all individuals with information on SLM’s actions, including whistleblowers and former employees, to reach out to the firm.

Contact Information and Further Resources

Investors who acquired SLM securities during the specified period are invited to contact Faruqi & Faruqi’s partner, Josh Wilson, directly at 877-247-4292 or 212-983-9330 (Ext. 1310). For more details on the SLM Corporation class action, visit www.faruqilaw.com/SLM.