Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of federal and state law by Navient Corporation (NASDAQ: NAVI) and certain of its officers. Navient provides financial products and services including federal family education loan program (FFELP) loans and servicing for FFELP loan portfolio.
Specifically, Johnson & Weaver’s investigation seeks to determine whether certain statements regarding Navient’s business and prospects were false and misleading when made.
On July 13, 2015, after the close of trading, Navient issued a press release reducing its core earnings guidance to $0.40 per share for 2Q 2015, which had ended June 30, 2015, and to $1.85 per share for fiscal 2015, a more than 15% cut, citing, in large part, the poor performance of its Private Educational Loan portfolio, emphasizing that borrowers who returned to school during the recession, deferring loan payments and had resumed payments during fiscal 2014, had not been repaying their loans on a timely basis. As a result, Navient disclosed that it would now be forced to increase its Private Education Loan portfolio loan loss provision to $191 million for the 2Q 2015 and to between $575 million and $600 million for fiscal 2015, diminishing Core earnings and profits. In response to this news, the price of Navient common stock plummeted, falling nearly $2 per share, approximately 11%, from its close on July 13, 2015, on unusually heavy trading volume. Then, on August 24, 2015, post-market, the company reported that on August 19, 2015 wholly-owned subsidiary Navient Solutions, Inc. (NSI) received a Notice and Opportunity to Respond and Advise letter providing notice that the Consumer Finance Protection Bureau’s (“CFPB”) Office of Enforcement is considering recommending that CFPB take legal action against NSI. On this news, the company's shares fell $1.01 or nearly 7.73% to close at $12.05 on August 25, 2015.
If you have information that could assist in this investigation, or if you are a Navient shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (jimb@johnsonandweaver.com) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151009005702/en/
Contacts:
Jim Baker, 619-814-4471
jimb@johnsonandweaver.com
