Investors Sue SLM (Sallie Mae) Over Alleged Misleading PEL Delinquency Disclosures

Sallie Mae Sued Over Delinquency Disclosures in Securities Filing

A Los Angeles law firm says investors in SLM Corporation, also known as Sallie Mae, may move to become lead plaintiff in a securities fraud class action that alleges the company misled the market about loan performance and loss‑mitigation effectiveness. The Law Offices of Frank R. Cruz issues a notice saying the complaint covers statements made between July 25, 2025 and August 14, 2025 and centers on the performance of SLM’s PEL portfolio. The firm distributes the notice via PR Newswire on Feb. 3, 2026 and invites affected investors to take steps to preserve their rights.

The complaint asserts defendants failed to disclose a “significant increase” in early‑stage delinquencies and overstated the effectiveness of SLM’s loss mitigation and loan modification programs, as well as the stability of PEL delinquency rates. It alleges that public statements about the company’s operations, business and prospects were materially misleading or lacked a reasonable basis, and that investor reliance on those statements produced quantifiable losses. The notice frames the action as seeking recovery on behalf of a class of shareholders who purchased SLM securities during the specified window.

The filing places a spotlight on operational and disclosure practices in the private education loan sector, where accurate reporting of delinquency trends and the efficacy of remediation programs is central to investor and regulator confidence. If the allegations advance, the litigation could prompt intensified scrutiny of Sallie Mae’s servicing and workout processes, and push the company toward more granular public disclosures about early‑stage delinquencies and loss mitigation outcomes. The case may also influence how other student‑loan lenders describe portfolio stability and the performance of borrower assistance programs.

Class Action Procedure and How to Preserve Rights

The Cruz firm sets a statutory lead plaintiff deadline of Feb. 17, 2026 and encourages eligible SLM investors to contact its office by email at [email protected], by phone at 310‑914‑5007, or through www.frankcruzlaw.com; it also references twitter.com/FRC_LAW. The notice states that investors need not act immediately to be class members, may retain counsel of their choice or remain absent members, and cautions that the announcement may be considered attorney advertising under some jurisdictions’ rules.

The firm urges plaintiffs with quantifiable losses to reach out promptly so claims can be evaluated and potential recoveries pursued on behalf of the class. The procedural notice reiterates the complaint’s focus on PEL portfolio performance and investor reliance on allegedly misleading statements during the July–August 2025 window.