The Student Loan Corporation - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

The Student Loan Corporation Summary: According to a press release dated February 3, 2012, the action alleges that the Company, certain of its executive officers, and certain entities affiliated with a major financial institution committed violations of the Securities Exchange Act of 1934.

The Company, which was sold by entities affiliated with the Financial Institution defendants at the end of 2010, was one of the nation's leading providers of education financing products. The complaint alleges that during the Class Period the Company made fraudulent material misrepresentations and omissions regarding its business and operations. Among other things, the complaint alleges that defendants materially misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing high loan default and charge-off rates; (ii) that the Company had failed to engage in proper due diligence and underwriting in extending loans to high risk individuals/students; (iii) that the Company failed to properly and timely write down its non-performing loan portfolio assets by taking impairment charges required by Generally Accepted Accounting Principles ("GAAP"), and (iv) that the Company failed to charge adequate loan loss provisions for its loan portfolio in accordance with GAAP given the large, probable losses that were likely to be incurred.

On September 23, 2010, the Company released a statement describing the transactions pursuant to which the Company would be acquired by a Bidder Company. In connection with this release, the Company admitted that it had to take an impairment charge of almost $1 billion because certain loan assets had been carried on the Company’s books at inflated values.

INDUSTRY CLASSIFICATION:
SIC Code: 6141
Sector: Financial
Industry: Consumer Financial Services

COMPANY/ISSUER NAME:	The Student Loan Corporation
COMPANY/ISSUER TICKER:	STU
COMPANY WEBSITE:	https://www.studentloan.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Oklahoma Firefighters Pension & Retirement System, et al. v. The Student Loan Corporation, et al.

COURT: S.D. New York	DOCKET NUMBER: 12-CV-00895
JUDGE NAME:
DATE FILED: 02/03/2012	SOURCE:
CLASS PERIOD START: 01/15/2008	CLASS PERIOD END: 09/23/2010
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Gardy & Notis, LLP 501 Fifth Avenue, Suite 1408, New York, NY, 10017 (voice) 212-905-0509, (fax) 212-905-0508, Grant & Eisenhofer (New York) 485 Lexington Avenue, 29th Floor, New York, NY, (voice) 646.722.8500, (fax) 646.722.8500, lawyers@gelaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Complaint for Violation of the Federal Securities Laws
Type: Complaint		Date on the document: 02/03/2012
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/03/2012

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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