SLM Corporation Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Class Action Initiation: Investors who purchased SLM Corporation securities between July 25 and August 14, 2025, can now seek to be appointed as lead plaintiff in a class action lawsuit, alleging violations of the Securities Exchange Act of 1934 by the company and its executives.
- False Statements Allegations: The lawsuit claims that SLM failed to disclose a significant increase in early-stage delinquencies during the class period, leading to misleading statements regarding the effectiveness of its loss mitigation and loan modification programs, which undermined investor confidence.
- Rising Delinquency Rates: A report from TD Cowen indicated that July 2025 delinquency rates increased by 49 basis points month-over-month, significantly worse than seasonal trends, contradicting assurances from SLM's CFO, resulting in an approximate 8% drop in stock price.
- Legal Process Overview: Under the Private Securities Litigation Reform Act of 1995, any investor who invested in SLM securities during the class period can apply to be the lead plaintiff, representing all other members in the lawsuit and selecting their preferred law firm for representation.
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: 27.380
Low
23.00
Averages
31.09
High
37.00
Current: 27.380
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.
