SLM Investors Can Step Forward to Represent Shareholders in Major Securities Fraud Lawsuit

Date Published: January 19, 2026

Location: LOS ANGELES

The Schall Law Firm, a national shareholder rights litigation firm, has issued an important reminder to investors who purchased securities of SLM Corporation, also known as Sallie Mae, about their opportunity to take a leading role in a class action lawsuit alleging securities fraud related to statements made by the company in 2025.

This detailed report explains key developments, investor rights, legal background, procedural steps, and what affected shareholders need to know if they are considering joining this litigation.

Background: Who Is SLM Corporation?

SLM Corporation, commonly referred to as Sallie Mae, is a publicly traded financial services company listed on NASDAQ under the ticker symbol “SLM.” The firm is known for issuing private student loans, offering banking products, and servicing education-related financing. It has a long operational history in the student lending and financial services market.

According to the press release, investors who purchased shares of SLM during a defined period in 2025 may have been harmed by misleading statements made by the company. The Schall Law Firm is now facilitating legal action on their behalf.

The Class Action Lawsuit

The securities fraud lawsuit centers on alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5. These provisions are designed to protect investors against fraudulent or misleading practices in connection with the purchase or sale of securities.

According to the firm’s complaint, SLM made materially false and misleading statements throughout a specific period during mid-2025, which impacted the company’s publicly traded securities. Investors who bought these shares during this period reportedly suffered financial losses as a result.

Key Legal Allegations

The lawsuit alleges that:

• The company misrepresented its performance and financial health to the public and investors.
• SLM’s statements about its ability to manage loan delinquencies and loss mitigation efforts were inaccurate or deceptive.
• The firm allegedly downplayed significant increases in delinquency rates of private education loans (PEL), which negatively affected investors once the truth was revealed.

These alleged misstatements are claimed to have artificially inflated the stock price during the “Class Period,” meaning that when the market learned the truth, share prices fell and investors incurred economic losses.

Who Is Eligible to Join the Lawsuit?

The lawsuit applies to investors who purchased SLM securities between July 25, 2025 and August 14, 2025, inclusive. This timeframe is officially defined as the Class Period in the legal complaint.

Eligibility includes:

• Investors who purchased SLM stock during the Class Period and suffered financial losses.
• Both institutional and individual shareholders who qualify under the standard requirements for securities class actions.
• Shareholders who want to serve as the Lead Plaintiff, representing the interests of the class.

Lead Plaintiff Role Explained

The lead plaintiff in a securities class action is a representative shareholder chosen by the court to oversee the litigation, make strategic decisions, and work with counsel to pursue the case on behalf of all class members. Those interested in being appointed lead plaintiff must file a motion with the court by a court-imposed deadline.

The deadline for filing to be lead plaintiff in this case is February 17, 2026. Investors who fail to act by this date may still be part of the class, but will not have the ability to request lead plaintiff status.

How Investors Can Participate

The Schall Law Firm has urged affected investors to contact them for free consultations regarding their rights and how to participate in the lawsuit. Investors can choose to:

• Join the class action and remain a member without taking additional legal steps.
• File for lead plaintiff status to actively shape the litigation.
• Speak directly with attorneys at no cost to understand potential compensation and legal strategies.

Contact details include:

• Firm: The Schall Law Firm
• Attorney: Brian Schall, Esq.
• Address: 2049 Century Park East, Suite 2460, Los Angeles, CA 90067
• Phone: 310-301-3335
• Website: schallfirm.com
• Email: [email protected]

About the Schall Law Firm

The Schall Law Firm is a national litigation firm specializing in shareholder rights and securities litigation. The firm represents investors in class action lawsuits against corporations accused of financial misrepresentation, fraud, or violations of key securities laws.

In addition to this case, the firm has handled numerous similar actions on behalf of investors worldwide, aiming to recover financial losses and hold corporate entities accountable for violations of federal securities laws.

Timeline and Next Steps

Here is a summary timeline related to this case:

After the February 17 deadline, the court will consider all motions for lead plaintiff and select the individual or institution best suited to represent the class. This is a standard procedure in federal securities class actions.

Why This Case Matters to Investors

Securities fraud lawsuits play a central role in protecting investors. When companies provide misleading statements or fail to disclose material information that impacts share value, investors may make financial decisions based on incomplete or dishonest information. Class actions help injured investors pursue justice collectively.

In this case, the alleged misstatements involved consumer loan performance and risk factors related to private education loan delinquencies—topics that are critical for investors when assessing a financial services company like Sallie Mae.

Important Considerations for Shareholders

Shareholders affected by potential securities fraud should consider the following:

• Gather all records of SLM stock transactions during the Class Period.
• Consult legal counsel to understand individual rights in class actions.
• Decide whether to participate, pursue lead plaintiff status, or remain a passive class member.

Participation in a class action does not guarantee compensation, but it allows investors to be part of a collective effort to recover losses if the court rules in favor of the plaintiffs.

Conclusion

The announcement from The Schall Law Firm underscores a significant opportunity for SLM investors who may have suffered losses due to alleged misleading statements by the company. Investors have until early 2026 to decide their course of action, potentially influencing the direction of the litigation by stepping forward as lead plaintiff.

For more details, interested shareholders are encouraged to contact legal counsel or The Schall Law Firm directly to understand their options and rights under federal securities law.