SLM Corporation Faces Class Action Lawsuit; Investors Must Apply by February 17
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Lawsuit Background: SLM Corporation and its executives are facing a class action lawsuit for failing to disclose a significant increase in early-stage delinquencies during the period from July 25 to August 14, 2025, with investors needing to apply as lead plaintiffs by February 17, 2026, potentially impacting the company's reputation and stock price.
- Financial Impact: A report from TD Cowen indicated that July 2025 delinquencies rose by 49 basis points month-over-month, significantly worse than seasonal trends, leading to an approximate 8% drop in SLM's stock price following the news, reflecting market concerns over the company's financial health.
- Legal Process: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased SLM securities during the class period can seek appointment as lead plaintiff, who will represent other investors in the lawsuit, potentially influencing future recovery outcomes.
- Law Firm Strength: Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, ranked #1 in ISS Securities Class Action Services for four out of the last five years, recovering over $2.5 billion for investors in 2024, demonstrating its strong capabilities in such cases.
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 33.44 USD with a low forecast of 29.00 USD and a high forecast of 39.00 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.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 26.830
Low
29.00
Averages
33.44
High
39.00
Current: 26.830
Low
29.00
Averages
33.44
High
39.00
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.
