Navient Corporation (Nasdaq: NAVI)
A class action has been commenced on behalf of purchasers of Navient Corporation (Nasdaq: NAVI) common stock between February 25, 2016 and October 4, 2017 (the “Class Period”).
The complaint charges Navient and certain of its officers with violations of the Securities Exchange Act of 1934. Navient provides asset management and business processing services to education, health care and government clients at the federal, state and local levels in the United States.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Navient’s business and operations, including that the Company was engaged in deceptive practices to facilitate the origination of subprime loans and had committed unfair and deceptive acts by steering student borrowers into payment plans that postponed bills, allowing interest to accumulate, rather than helping them enroll in income-driven repayment plans. As a result of these false statements and/or omissions, the price of Navient shares was artificially inflated during the Class Period, with its stock trading at close to $18 per share.
Then on October 5, 2017, Pennsylvania Attorney General Josh Shapiro announced the filing of a lawsuit in the U.S. District Court for the Middle District of Pennsylvania against Navient and one of its subsidiaries alleging that they had engaged in unfair and deceptive lending and had failed to offer proper repayment plans to students. Specifically, the lawsuit alleged that the defendants had “unfairly and deceptively engaged in a series of acts and practices to facilitate originating these subprime loans to many borrowers who had a high likelihood of defaulting” and that, “since a least July 2011, despite publicly assuring borrowers that it will help them identify and enroll in an appropriate, affordable repayment plan, Defendants have routinely disregarded that commitment and instead steered borrowers experiencing long-term financial hardship into forbearance.”
As a result of this news, the price of Navient shares fell $2.10 per share, or over 14%, to close at $12.60 per share on October 5, 2017.
If you are a current shareholder and purchased stock between February 25, 2016 and October 4, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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