NEW YORK, Feb. 12, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/navient/) today announced that a class action has been commenced in the United States District Court for the District of Delaware on behalf of purchasers of Navient Corporation ("Navient" or the "Company") (NASDAQ: NAVI) publicly traded securities during the period between April 17, 2014 and December 28, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from February 11, 2016. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/navient/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Navient and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Navient is the nation's largest loan servicer, servicing more than $300 billion in student loans. Navient holds the largest portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program, as well as the largest portfolio of Private Education Loans.
The complaint alleges that during the Class Period, defendants materially misstated the Company's business metrics and financial prospects by failing to disclose that: (a) an increased number of higher risk Private Education Loan borrowers were not timely repaying their loans; (b) Navient's loan loss reserves were materially understated; (c) the Company was engaged in unsound business practices; (d) the Company's operating structure was bloated; (e) a significant portion of the Company's low-rate credit facilities were at risk of being reduced or eliminated, which would cause the Company to face higher borrowing costs; and (f) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's prospects and growth, including its ability to report core earnings of $2.10 per share and $2.20 per share in 2014 and 2015, respectively. As the truth about the Company's business and prospects was revealed through a series of partial disclosures, the price of Navient's publicly traded securities declined precipitously, erasing hundreds of millions of dollars in market capitalization.
Plaintiff seeks to recover damages on behalf of all purchasers of Navient publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/navient/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP