Sallie Mae's Planned Split Draws Shareholder Suit

Law360, Wilmington (January 29, 2014, 4:27 PM EST) -- A Sallie Mae investor launched a putative class action Tuesday over the company's plans to separate its student loan and consumer banking operations, saying preferred shareholders are getting the short end of the stick because they will receive stock only in the less-valuable banking business.

Filed in Delaware Chancery Court, the complaint claims the proposed transaction shafts investors holding preferred series B shares, who will receive stock in SLM BankCo. — the entity picking up Sallie Mae's consumer banking business — but not the company taking...
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