Sallie Mae To Pay $35M To Resolve Stock Drop Suit

Law360, New York (April 20, 2012, 9:22 PM EDT) -- A New York federal judge gave preliminary approval Wednesday to a $35 million settlement of a shareholder class action alleging lender Sallie Mae and parent SLM Corp. concealed risky subprime student loans in Sallie Mae's portfolio that ultimately caused a stock price drop.

The settlement would resolve claims brought on behalf of a class of shareholders, alleging that Sallie Mae dramatically expanded its private student loan business in 2006 and 2007 by extending credit to subprime borrowers, even as it told shareholders and the general public...
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