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A group of investors accusing the student loan company Navient of misleading them about an alleged conspiracy to push borrowers into pricey forbearance plans has convinced a federal judge to certify their Class.
The Class includes investors who purchased Navient stock between Jan. 18, 2017 through Nov. 20, 2018. U.S. District Judge Robert B. Kugler agreed to the unopposed motion for certification this week, noting that hundreds of millions of shares were traded during that time.
Navient hiked its stock price with deceptive information about how it treated borrowers — allegedly putting them in more expensive forbearance programs, rather than cost-effective income-based repayment plans. Then, according to the class action lawsuit, the company lied about it.
Navient faces a number of other legal issues surrounding claims it misled student loan borrowers, including another class action lawsuit filed by student loan holders who say the company withheld information about federal loan forgiveness programs. In addition, Navient reportedly faces a potential $4 billion judgment in a lawsuit filed by the Consumer Financial Protection Bureau (CFBP) over the same allegations. Several State Attorneys General have also filed lawsuits saying Navient failed to properly inform borrowers about their options.
These lawsuits accuse Navient of looking out for its bottom line at the expense of student loan borrowers. The company allegedly took the easy route, pushing borrowers to put a pricey pause on their loans, rather than taking the time to explain other, less expensive repayment options. In addition to forcing borrowers to pay more than under other federal repayment programs, the company allegedly based executive bonuses and other incentives on the number of borrowers put in forbearance.
The Navient investors class action lawsuit claims that the company made false and misleading statements in response to legal action by the CFPB and Attorneys General in 2017, allegedly artificially inflating its stock price as a result.
The investors contend that despite growing evidence that Navient engaged in predatory lending practices, company officers continued to categorically deny the allegations. When the alleged scheme was revealed in an AP News exclusive report on Nov. 20, 2018, Navient stock took a drive, dropping 11 percent when the article was released, claims the class action lawsuit.
Were you misled by Navient’s alleged scheme to steer borrowers into forbearance? Tell us about your experience in the comment section below!
The lead plaintiffs and Class Members are represented by Adam M. Apton of Levi & Korsinsky LLP.
The Navient Investors Class Action Lawsuit is Eli Pope v. Navient Corp. et al., Case No. 1:17-cv-08373, in the U.S. District Court for the District of New Jersey.
Read About More Class Action Lawsuits & Class Action Settlements:
- Navient Class Action Alleges Borrowers Misled About Loan Forgiveness
- Nelnet Class Action Says Income-Based Repayment Plans Cancelled
- Do You Qualify: Wrong Number Robocalls | Business, Creditor & Debt Collector Lawsuit Investigation
- Do You Qualify: Florida College Fees Refund | COVID Class Action Lawsuit Investigation
148 thoughts onNavient Student Loan Fraud Class Action Lawsuit Gets Certified
I need to please be added to the suit.
add me please
This company is the worst.Misleading, miapplying payment, refusing to remove co-signer & collecting on post chapter 7 on private student loans.
Please add me to this class action suit. I, was hit with high interest rates and led into bad forbearance plans since this company was Sallie Mae.
I was. Please add me
Please add me to this class action suit. I, too, was hit with high interest rates exceeding more than what I owe.