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.
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