(Lenets_Tatsiana/DepositPhotos.com)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:
215 thoughts onNavient Student Loan Fraud Class Action Lawsuit Gets Certified
I was misled by Navient and the school Daymar as well. They told me that they didn’t accept Pell grants, but they did accept the student aid loans, and they made the learning and repayment of loans sound worth getting the loans since it would be put on hold until I had a steady income which was to be from the income from the job of what I had gone to school through Navient/Daymar then I would make super low payments. I have had to put a lot of time in trying to get a hold of Navient to apply for forgiveness, and I never could get a hold of them, and all the loans are incorrect, and they didn’t send me any of what was supposed to be credited and disbursed to me. Still to this day I have not gotten what was rightfully mine from them which was more time and effort into trying to reach Navient to find out how to get the money that was supposed to be disbursed to me, still nothing. The loans are still on my record and none has even tried to help me get the loan forgiveness and it hirts my credit report since it states that I have not paid them
Me and my son’s student loan were held with Navient add me as well