SOURCE: Johnson & Perkinson
|
March 06, 2008 15:18 ET
Johnson & Perkinson Announces Commencement of Class Action Litigation Naming Sallie Mae Corp.
SOUTH BURLINGTON, VT--(Marketwire - March 6, 2008) - Johnson & Perkinson hereby announces
the commencement of a class action lawsuit naming SLM Corporation ("Sallie
Mae" or the "Company") (NYSE: SLM). The action, docket numbered
08-CV-01029, was filed in the United States District Court for the Southern
District of New York. Individuals, families, trusts or other entities that
purchased Sallie Mae common stock between January 18, 2007 and January 3,
2008, inclusive, have the opportunity to participate as Lead Plaintiffs in
the currently pending class action litigation against the Company. To do
so, you must apply to serve in that capacity by March 31, 2008.
Johnson & Perkinson, a litigation boutique law firm based in South
Burlington, Vermont, has extensive experience prosecuting investor class
actions and actions involving financial fraud. Attorneys Johnson and
Perkinson are both former employees of the Securities and Exchange
Commission. Dedicated to maximizing shareholder return, members of Johnson
& Perkinson have prosecuted complex class actions alleging securities or
consumer fraud/deception on behalf of investors/consumers against numerous
public companies since 1985, resulting in the recovery of many hundreds of
millions of dollars, and have been singled out for excellence by various
courts. The firm is litigating, or has recently resolved litigation, as
Lead or Co-Lead Counsel in securities class actions against Xerox,
Priceline, Wireless Facilities, i2 and Xchange, and serves on the Executive
Committee in the Global Crossing case.
The Complaint alleges that Sallie Mae and certain of its officers and
directors violated federal securities laws by issuing a series of
materially false and misleading statements. Specifically, Defendants
concealed the following: (i) the Company failed to engage in proper due
diligence in originating student loans to subprime borrowers, particularly
those attending non-traditional institutions; (ii) the Company was not
adequately reserving for uncollectible loans in its non-traditional
portfolio; (iii) the Company had far greater exposure to anticipated losses
and defaults related to its non-traditional loan portfolio than previously
disclosed; and (iv) given the deterioration of the subprime market and
reductions in federal subsidies, the Company would be forced to tighten
lending standards on both federal loans and private education loans which
would have a direct material negative impact on its loan originations going
forward. On January 3, 2008, the Company disclosed that it would be
cutting back on its core business of lending to students by being "more
selective" in making students loans due to turmoil in the credit markets
and a new federal law that slashed subsidies to the private companies that
make government-backed student loans. On this news, Sallie Mae's stock
dropped $2.49 per share to close at $16.67 per share. Sallie Mae traded as
high as $57.98 per share in July 2007.
If you wish to discuss this action or have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Johnson & Perkinson attorneys James F. Conway, III or Eben
F. Duval toll free at 1-888-459-7855; via email at email@jpclasslaw.com;
through our website at www.jpclasslaw.com; or by mail at Johnson &
Perkinson, 1690 Williston Road, P.O. Box 2305, South Burlington, Vermont
05403. Attorneys at Johnson & Perkinson can investigate your potential
claims and help you decide if seeking appointment as a Lead Plaintiff is
right for you. Your ability to share in any recovery is not affected by
your decision to not seek appointment as a Lead Plaintiff.