MINNEAPOLIS, Feb. 6, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of SLM Corporation ("Sallie Mae" or the "Company") (NYSE:SLM) publicly traded securities during the period January 18, 2007 through January 3, 2008 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before March 31, 2008. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
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: 1) the Company failed to engage in proper due diligence in originating student loans to subprime borrowers, particularly those attending non-traditional institutions; 2) the Company was not adequately reserving for uncollectible loans in its non-traditional portfolio; 3) the Company had far greater exposure to anticipated losses and defaults related to its non-traditional loan portfolio than previously disclosed; and 4) 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 purchased SLM Corporation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685