Sallie Mae slapped with class-action suit
Class Action News
Sallie Mae, which a week ago obtained new financing and ended its court battle over a failed $25 billion buyout of the student lender, is now the subject of a class-action suit.
Law firm Coughlin Stoia Geller Rudman & Robbins LLP said it filed a suit against Reston, Va.-based Sallie Mae in the U.S. District Court for the Southern District of New York on behalf of purchasers of Sallie Mae common stock between Jan. 18, 2007, and Jan. 3, 2008.
The firm said the complaint charges Sallie Mae and certain officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that the defendants issued materially false and misleading statements regarding Sallie Mae's business and financial results.
We believe the complaint is meritless," said Tom Joyce, a spokesman for Sallie Mae, formally known as SLM Corp.Sallie Mae said on Jan. 28 that the lawsuit it filed in October against four proposed acquirers of the company would be dismissed, as would all counterclaims, and the merger agreement was terminated.
In conjunction with that action, Sallie Mae would receive commitments for $31 billion of 364-day financing from a group of banks led by Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC), New York-based JPMorgan Chase & Co.and others.
Last year the investors backed away from the merger, pointing to the credit crunch that has made it more difficult to land money to finance large deals and a new federal law that slashes subsidies to student lenders.
Sallie Mae recently cut 3 percent of its work force and warned that more layoffs are likely to occur as it tries to cut costs.
Related listings
-
Class Action Filed Against American Dental Partners, Inc.
Class Action News 02/05/2008The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Massachusetts on behalf of al...
-
Class-action settlement big victory for athletes
Class Action News 01/30/2008[##_1L|1103205775.jpg|width="130" height="90" alt=""|_##]As part of a settlement to a federal antitrust suit, the NCAA agreed Tuesday to make available $10 million that will provide supplemental money above the standard athletic grant-in-aid to athle...
-
Dannon Company Refutes Class Action Lawsuit
Class Action News 01/28/2008Yogurt company The Dannon Company has refuted the class-action lawsuit filed against it in Los Angeles, California. The company has said the complaint does not have any support for the generalizations made in the lawsuit and the publication cited in ...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.