SLM Corp Faces Class Action Lawsuit Over Securities Fraud Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 Jan 26
Source: Globenewswire
SLM Corp's stock rose by 5.00% as it crossed above the 20-day SMA, reflecting a positive trading session.
The company is currently facing a class action lawsuit initiated by Bronstein, Gewirtz & Grossman, alleging securities fraud due to false statements made between July 25 and August 14, 2025. The lawsuit highlights concerns over rising delinquencies and inadequate disclosure of the company's financial health, which could undermine investor confidence. Affected investors have until February 17, 2026, to apply as lead plaintiffs.
This legal challenge may impact SLM's reputation and investor sentiment, despite the recent stock price increase, as ongoing concerns about financial transparency could weigh on future performance.
Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SLM is 31.09 USD with a low forecast of 23.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 26.920
Low
23.00
Averages
31.09
High
37.00
Current: 26.920
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
