Sallie Mae Class Action Targets Subprime Exposure

Law360, New York (March 6, 2008, 12:00 AM EST) -- Lender Sallie Mae has been hit with another proposed class action alleging the student loan giant violated federal securities laws by making false statements about the extent of its subprime exposure.

In a lawsuit filed on March 6 in the U.S. District Court for the Southern District of New York, law firm Johnson & Perkins alleged that Sallie Mae and certain of its executives concealed several important facts about the company's financial health that, when uncovered, sent the lender's stock price tumbling.

The complaint claims that...
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