Securities Class Action Lawsuit Seeks to School Navient
WASHINGTON, DC (September 19, 2017) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against Navient Corporation(“Navient” or the “Company”)(NASDAQ:NAVI). The class action is on behalf of investors who acquired Navient securities between February 25, 2016 and October 4, 2017.
Investors with losses have until December 15, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
Allegations Against Navient
Navient provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels.
According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Navient engaged in deceptive practices to facilitate the origination of subprime loans; (2) Navient 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; and (3) as a result, Navient’s public statements were materially false and misleading at all relevant times.
On October 5, 2017, Pennsylvania Attorney General Josh Shapiro announced the filing of a lawsuit in United States District Court for the Middle District of Pennsylvania against Navient and one of its subsidiaries for engaging in unfair and deceptive lending and failed to offer proper prepayment plans to student (the “PA AG Lawsuit”).
Specifically, the PA AG Lawsuit alleges that:
Defendants 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….
Nevertheless, since at 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.
On this news, shares of the Company fell $2.10 per share or over 14% from its previous closing price to close at $12.60 per share on October 5, 2017, damaging investors.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel