Sallie Mae May Face Class Action By Investors

Law360, New York (February 5, 2008, 12:00 AM EST) -- A proposed class of Sallie Mae investors has accused the student lending giant of failing to promptly disclose some cutbacks it made and losses it sustained during 2007 due to the tightening credit market and new federal legislation.

One investor filed the putative class action last Friday in the U.S. District Court for the Southern District of New York, charging the company, formally called SLM Corp., as well as the CEO, the president, and a former vice president with violating federal securities laws.

“We are investigating...
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