According to the law firm press release, Navient provides financial products and services in the United States. The company operates in four segments: Federal Family Education Loan Program (“FFELP”) Loans, Private Education Loans, Business Services, and Other. The Company provides FFELP loans and servicing for FFELP loan portfolios; and servicing and asset recovery services for loans on behalf of guarantors of FFELP loans, guaranty agencies, higher education institutions, the United States Department of Education, and other federal clients, as well as states, courts, and municipalities. Navient also acquires, finances, and services private education loans.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s loan servicing practices were not in compliance with applicable federal regulations; (ii) the Company’s non-compliance with federal regulations could subject Navient and its subsidiaries to restitution, civil monetary penalties, and corrective actions; and (iii) as a result of the foregoing, Navient’s public statements were materially false and misleading at all relevant times.
On June 30, 2016, this action was consolidated into lead case 1:16-cv-00112. On the same date, the Court appointed Lead Plaintiff and Counsel. Lead Plaintiffs filed a consolidated complaint on September 28.
On September 6, 2017, the Court granted Defendants' Motion to Dismiss with leave to amend. On November 17, Lead Plaintiffs filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on January 16, 2018. On January 29, 2019, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. On April 26, the Court issued an Order substituting Lead Counsel.
Plaintiffs filed a Motion for Class Certification on September 6. On September 2, 2020, the Court issued an Order certifying a Class and appointing Class Representatives and Counsel.