Kehoe Law Firm and Buffalo Grove Police Pension Fund File Derivative Complaint on Behalf of Navient Inc., Against Various Officers and Directors

The Kehoe Law Firm, P.C. announces that it has filed a Verified Stockholder Derivative Complaint on behalf of the Buffalo Grove Police Pension Fund (“Plaintiff”) against Navient, Inc. (“Navient” or the “Company”) and certain current and former members of Navient’s Board of Directors, as well as certain executives. The Complaint alleges breaches of fiduciary duties in connection with Navient’s student loan servicing and collection practices.

The Complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that Navient knowingly manipulated its student loan servicing practices, violating federal and state laws, and causing borrowers to incur millions in additional costs. The allegations include steering borrowers into inappropriate forbearance programs, failing to provide adequate notice for paperwork submission, misinforming borrowers about loan rehabilitation programs, committing payment processing errors, and misreporting military accounts. 

Navient’s practices, as outlined in the Complaint, resulted in regulatory and private actions, including lawsuits by the Consumer Financial Protection Bureau and various state attorneys general, and consequently the Company’s reputation and stock value allegedly suffered.

The Individual Defendants, members of Navient’s Board, are accused of failing to diligently serve the Company, while turning a blind eye to illegal practices. The Complaint further asserts that certain Individual Defendants capitalized on Navient’s artificially inflated stock price, making substantial stock sales before the misconduct was revealed.

The Kehoe Law Firm represents the Plaintiff in this action and seeks to hold the defendants accountable for their alleged breaches of fiduciary duties and their role in the significant harm caused to Navient and its shareholders. The case is captioned Buffalo Grove Police Pension Fund V. Diefenderfer et. al., 2:19-CV-00062 (E.D. Pa.). 

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.