1. Faruqi & Faruqi is investigating claims against SLM Corporation. 2. SLM allegedly misled investors about rising delinquency rates. 3. TD Cowen reported a 49 bp increase in delinquencies. 4. Shares dropped 8.09% after the report, closing at $30.32. 5. February 17, 2026, is the deadline for lead plaintiff applications.
FAQ
Why Bearish?
The article highlights misleading information and rising delinquencies impacting trust in SLM. Historically, companies facing litigation and declining performance metrics see stock price drops.
How important is it?
The ongoing class action is significant, affecting current investor confidence. Legal troubles significantly hinder stock performance.
Why Short Term?
Immediate investor sentiment is likely to turn negative due to the class action. Similar past litigations have led to short-term stock volatility.
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Faruqi & Faruqi, LLP Investigates Claims on Behalf of SLM Corporation Investors
Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating potential claims against SLM Corporation (NASDAQ: SLM). This inquiry follows recent developments regarding SLM, specifically addressing investors who may have sustained losses between July 25, 2025 and August 14, 2025. Investors are encouraged to reach out to Faruqi & Faruqi partner James (Josh) Wilson to discuss their legal options and insights regarding the situation.
Deadline Reminder for Investors
Faruqi & Faruqi reminds potential claimants that the deadline to apply for the lead plaintiff role in a federal securities class action against SLM is set for February 17, 2026. The lead plaintiff will represent the interests of the class of investors in the ongoing litigation.
Allegations Against SLM Corporation
The complaint against SLM Corporation and its executives alleges several violations of federal securities laws. Key points include:
- SLM is reportedly facing a significant escalation in early-stage delinquencies.
- Executives allegedly overstated the effectiveness of SLM's loss mitigation and loan modification programs.
- Public statements made by the company purportedly painted a materially false and misleading picture of SLM's operational stability.
Impact of Delinquency Reports
On August 14, 2025, TD Cowen, an investment bank, released a market report indicating that July 2025 delinquencies had risen by 49 basis points month-over-month. This figure is starkly higher than the expected seasonal increase of 10 basis points. The increase was primarily driven by a 45 basis point surge in early-stage delinquencies, contradicting reassurances from SLM's executives.
As a result of these findings, SLM's stock price experienced a notable decline, falling by $2.67 per share, or 8.09%, to close at $30.32 per share on August 15, 2025.
Opportunities for Investors
Any investors affected by these developments are encouraged to consider their options. The court will appoint a lead plaintiff based on the largest financial interest and typicality of claims within the class. Our legal team emphasizes that your ability to recover any damages is unaffected by your decision to seek this role or remain an unnamed class member.
Faruqi & Faruqi, LLP also invites individuals with additional information regarding SLM's practices, including whistleblowers and former employees, to contact the firm.
Contact Information
For those seeking further information about the class action involving SLM Corporation, visit www.faruqilaw.com/SLM or call Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310).