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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 have loans over 10 years old with Navient.
Please let me know if I qualify.
I been repaying $7000 for almost 10 years now dealing with Navient.
Please add me.
Still paying on loans years later.
I have been struggling to make payments back since 2017. I just received a notice from them in October that they have sold my loan to another company. Since this info ha been released about the lawsuit, I am wondering if Navient sold it intentionally to try to avoid losing more money. I am going to be highly ticked off if I end up getting screwed because if it.
For years I have struggled with Navient. When my school closed, they wouldn’t help me. Of course hindsight is 20/20, and the structure of the private loans is the ultimate scam. How does a loan double in amount in under 10 years? How is this helping us? It’s a never ending climb. There’s no visible sign of an end. I completely needed to be a part of this lawsuit. It’s horrible how many of us are suffering and I have been paying them back when I can. Please help us.
Please add me! I struggled to pay for my loans in 2016 all the way though 2019 and they said they couldn’t do anything for me! They are not good people! I would like to be added.
i co-sign for my daughter please add me to this lawsuit how did i go from department of education to a private loans at a rate of 9 percent, the original loan was 25,000. paying on this loan for 12 years and still owe 25,000.
Please add me! They’ve talked me into multiple “income-driven repayment” plans!
I have loans with them too. Please Add Me!!
Please add me to this