Navient investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Navient provides financial products and services in the United States. The company operates in four segments: Federal Family Education Loan Program (“FFELP”) Loans, Private Education Loans, Business Services, and Other. Navient also acquires, finances, and services private education loans. Navient was formerly the loan management, servicing, and asset recovery business of SLM Corporation (“Sallie Mae”). On April 1, 2014, the board of Sallie Mae approved the strategic separation of Navient from Sallie Mae’s consumer banking business.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) the company’s loan servicing practices were not in compliance with applicable federal regulations; (ii) the company’s non-compliance with federal regulations could subject Navient and its subsidiaries to restitution, civil monetary penalties, and corrective actions; and (iii) as a result of the foregoing, Navient’s public statements were materially false and misleading at all relevant times.
The Class Period begins on May 9, 2014, when Navient filed a quarterly report on Form 10-Q with the SEC announcing the company’s financial and operating results for the quarter ended March 31, 2014.
According to the complaint, on August 24, 2015, post-market, the company reported that on August 19, 2015, the company’s wholly-owned subsidiary Navient Solutions, Inc. (“NSI”) had received a Notice and Opportunity to Respond and Advise (“NORA”) letter providing notice that the Consumer Financial Protection Bureau’s (“CFPB”) Office of Enforcement was considering recommending that CFPB take legal action against NSI related to the previously disclosed investigation regarding assessing late fees on student loans and other related misconduct, and that the CFPB might seek restitution, civil monetary penalties, and corrective action against NSI.
Following this news, the company’s shares fell $1.01, or nearly 7.73% to close at $12.05 on August 25, 2015.
Then, on February 6, 2016, U.S. presidential candidate, Hillary Clinton, directed public attention to the subject of the CFPB’s investigation of Navient during a speech at New England College in Henniker, New Hampshire, stating that Navient’s “behavior is outrageous” and that the company has been “misleading people” and “doing some really terrible things.” Following this news, Navient stock fell $0.57, or 5.99%, to close at $8.94 on the following trading day, February 8, 2016.
If you are a member of the class described above, you may no later than April 11, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
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