The Kehoe Law Firm, P.C. is pleased to announce that it has successfully reached a settlement on behalf of its client, the Buffalo Grove Police Pension Fund, in the stockholder derivative action against Navient, Inc. (“Navient” or the “Company”). The settlement includes comprehensive governance reforms designed to prevent and protect against the recurrence of alleged wrongdoings, such as:
-
- Loan Servicing and Collections Compliance Committee: Navient shall maintain a Loan Servicing and Collections Compliance Committee who oversee loan servicing and loan-related collections efforts and internal controls and report to the Board’s Audit Committee.
- Two New Independent Directors and Improved Board Training: Navient will add two new independent directors to the Board. All new directors will receive training on consumer protection and state collection laws, including annual training on these topics.
- New Limits on Board Service: The Chair of the Audit Committee shall not serve on the audit committee of more than one other public company’s board of directors. No director may serve as chairperson of one company’s committee or member of more than three committees.
- Greater Authority for Independent Directors: Independent directors will meet in executive session at least four times annually. Independent directors have the authority to request reports from any of the Company’s business units.
- Greater Disclosure of Risk Oversight Responsibilities: New disclosures regarding the Board’s risk oversight responsibilities. Revision of Board Charters to clearly describe each committee’s risk oversight responsibilities.
- Code of Business Conduct and Whistleblower Policy: Amendment to the Code of Business Conduct to direct executives and employees to report any loan servicing and collections violations immediately.
These governance reforms aim to enhance oversight, transparency, and accountability within Navient, providing a substantial benefit to the Company and its stockholders.
John Kehoe, Partner at Kehoe Law Firm, P.C., commented on the settlement: “We are pleased with this settlement, which reflects a significant step towards improving corporate governance at Navient. The implemented reforms address key concerns and will contribute to a more transparent and accountable framework, ultimately benefiting the Company and its shareholders.”
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.