Sallie Mae (SLM) hit with twin securities suits over delinquency disclosures

Sallie Mae hit with twin securities suits over delinquency disclosures

Sallie Mae (SLM) is facing coordinated securities litigation after two law firms announce class actions alleging the company misleads investors about loan performance and loss‑mitigation programs. Glancy Prongay Wolke & Rotter LLP and DJS Law Group each notify shareholders that investors who purchased SLM shares between July 25, 2025 and August 14, 2025 may seek lead‑plaintiff status in suits claiming the company failed to disclose a marked rise in early‑stage delinquencies and overstated the effectiveness of its loan modification and loss mitigation efforts.

The complaints assert SLM makes materially misleading statements about the stability of its PEL delinquency rates and the success of borrower remediation programs, and say those representations are baseless in light of the alleged uptick in delinquencies. DJS frames its action as alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b‑5, while Glancy’s notice invites investors to move for lead‑plaintiff appointments and to provide purchase dates and share counts to the firm. Both firms set a February 17, 2026 deadline for lead‑plaintiff motions.

The filings signal potential larger litigation exposure for the student‑lending industry if the allegations proceed, with plaintiffs seeking to recover investor losses that they tie to the asserted misrepresentations. Both firms emphasize that contacting them is voluntary and that investors need not retain counsel to remain class members, while also noting that their announcements may constitute attorney advertising under applicable ethics rules.

Procedural notices and contact details

Glancy provides a Los Angeles contact and DJS lists an Eastchester, New York office; both remind potential plaintiffs to include mailing addresses, phone numbers and share purchase information. Each firm highlights the February 17, 2026 lead‑plaintiff deadline and says inquiries will be handled confidentially.

Broader industry watch

Market observers and other creditors are likely to monitor the cases for implications on disclosure practices in the student‑loan sector, particularly how lenders report early‑stage delinquencies and the measured effectiveness of remediation programs, which can affect investor assessment of credit quality and operational transparency.