NEW YORK--(BUSINESS WIRE)--
Bragar Eagel & Squire, P.C. is investigating potential claims against the board of directors of Navient Corporation (NASDAQ:NAVI) concerning whether the board has breached its fiduciary duties to stockholders.
On February 27, 2015, the U.S. Department of Education announced that it had terminated its relationship with Navient’s wholly-owned subsidiary Pioneer Credit Recovery (“Pioneer”), a collection agency, after finding that Pioneer misled an unacceptably high number of borrowers, resulting in larger fees for Pioneer to the detriment of those borrowers. Following the loss of this contract, Navient shares declined $1.89 per share to close at $19.51 on March 2, 2015.
On July 13, 2015, the Company announced a substantial cut to its prior financial guidance for 2015, to reflect higher default rates for its private education loan portfolio. On this news, Navient shares declined $1.94 per share to close at $16.42 on July 14, 2015.
On August 24, 2015, Navient disclosed that its subsidiary, Navient Solutions, Inc. (“NSI”), received a formal notification that the Consumer Financial Protection Bureau (“CFPB”) is considering an enforcement action based on continued violations of consumer protection laws. On this news, Navient shares declined $1.02 per share to close at $12.04 on August 25, 2015.
On January 7, 2016, Generation Progress issued a report recommending that state governments tighten oversight of the student loan servicing industry by, among other things, enacting new laws to protect student loan borrowers and to specifically task state officials with helping borrowers resolve complaints against student loan companies. On this news, Navient shares declined $0.66 per share to close at $10.27 on January 7, 2016.
On February 6, 2016, Hillary Clinton stated that Navient’s “behavior is outrageous” and that the Company has been “misleading people” and “doing some really terrible things.” On this news, Navient shares declined $0.57 per share to close at $8.94 on February 8, 2016.
On January 18, 2017, the CFPB filed a complaint against Navient alleging that the Company “failed to perform its core duties in the servicing of student loans, violating Federal consumer financial laws as well as the trust that borrowers placed in [Navient].” According to an article in The Wall Street Journal, the CFPB “alleged that the company harmed consumers by providing inaccurate information, failing to process payments properly and not responding to borrower complaints. Navient also ‘illegally cheated’ borrowers out of their rights to lower repayments, helping push customers into default.”
If you purchased or otherwise acquired Navient securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning our investigation into Navient Corporation, please go to www.bespc.com/navient-corporation. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.
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