NEW YORK, Feb. 3, 2012 /PRNewswire/ -- Grant &
Eisenhofer P.A. and Gardy & Notis, LLP have filed a class
action lawsuit in the United States District Court for the Southern
District of New York, Case
No.12-cv-0895, on behalf of Oklahoma Firefighters Pension &
Retirement System, and all similarly-situated persons and entities
who purchased or otherwise acquired securities issued by The
Student Loan Corporation ("STU" or the "Company") (NYSE: STU) from
January 15, 2008 through September 23, 2010, inclusive (the "Class
Period"). The action alleges that STU, certain of its executive
officers, and certain entities affiliated with Citigroup, Inc.
committed violations of the Securities Exchange Act of 1934 (the
"Exchange Act").
STU, which was sold by entities affiliated with Citigroup to
Discover Financial Services ("Discover") at the end of 2010, was
one of the nation's leading providers of education financing
products. The Company originated, managed and serviced student
loans, including loans made in accordance with federally-sponsored
student loan programs, as well as private education loans, arising
under STU's CitiAssist program.
The complaint alleges that during the Class Period STU, and
certain controlling individuals and entities of STU, made
fraudulent material misrepresentations and omissions regarding
STU's 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
STU would be acquired by Discover. In connection with this release,
STU admitted that it had to take an impairment charge of almost
$1 billion because certain loan
assets had been carried on STU's books at inflated values.
Plaintiff seeks to recover damages on behalf of all purchasers
of STU common stock during the Class Period (the "Class"). The
plaintiff is represented by Grant & Eisenhofer and Gardy &
Notis, which have expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
If you purchased or acquired STU securities from January 15, 2008 through September 23, 2010, and you wish to serve as lead
plaintiff, you may move the Court no later than 60 days from today
(no later than April 3, 2012). Any
member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do
nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions
concerning this notice, please contact:
GRANT & EISENHOFER P.A.
Daniel L. Berger, Esq.
485 Lexington Avenue
29th Floor
New York, New York 10017
Telephone: 646-722-8522
E-mail: dberger@gelaw.com
Website: www.gelaw.com
GARDY & NOTIS, LLP
Meagan Farmer, Esq.
501 Fifth Avenue, Suite 1408
New York, New York 10017
Telephone: 201-567-7377
E-mail: mfarmer@gardylaw.com
Website: www.gardylaw.com
SOURCE Grant & Eisenhofer P.A.; Gardy & Notis, LLP