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:​

1. 1. 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.
   2.  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.
   3. 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.
   4. 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.
   5. ​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.
   6. ​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.​

In a significant development for stakeholders involved in the UDF Securities case, the court issued an order on February 21, 2019, approving the settlement and determining the award of attorneys’ fees and reimbursement of litigation expenses. The decision followed the Settlement Hearing held on February 15, 2019. Key Points of the Court order include:​

The court ensured due process by providing notice of the Settlement Hearing to all identifiable Settlement Class Members through approved means, including mailed notices and publications in Investor’s Business Daily and PR Newswire. 

The court approved the $10,435,725 fixed cash payment to the settlement fund and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. The court also found the requested attorneys’ fees and litigation expenses to be fair and reasonable, considering the complexity of the case, the efforts invested by Lead Counsel, and the potential benefits to Settlement Class Members.​

Lead Plaintiffs Louis J. D’Annibale, Paul Brown, and Plaintiff Mark Hay were awarded $2,500, $500, and $2,500, respectively, from the Settlement Fund as reimbursement for their incurred costs and expenses related to representing the Settlement Classes. 

This court order marks a pivotal moment in the UDF Securities case, providing clarity on attorneys’ fees, expenses, and plaintiff compensation. According to Partner Michael Yarnoff, “We are pleased with the settlement and the finality it brings to the UDF Securities case. This outcome underscores our commitment to achieving positive results for our clients.” 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

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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.

In the ongoing legal battle against NantHealth, Inc. and its executives, plaintiffs, including the Southeastern Pennsylvania Transportation Authority, have taken a significant step by filing a motion on September 20, 2018, seeking class certification for two distinct groups of investors. The motion aims to certify the following classes:​

Securities Act Class: This class comprises all individuals or entities who purchased or acquired NantHealth, Inc. common stock in or traceable to the Initial Public Offering (IPO). The Securities Act Class is representative of investors affected by alleged misrepresentations and omissions made by NantHealth and its executives in connection with the IPO.​

Exchange Act Class: Encompassing all individuals or entities who purchased any NantHealth, Inc. common stock between June 1, 2016, and May 1, 2017, the Exchange Act Class represents investors affected by the alleged securities law violations during this specific time.​

John A. Kehoe, Partner with the Kehoe Law Firm, and court-appointed co-lead counsel for the investors, emphasized the significance of seeking class certification: “Certifying these classes is a crucial step in our pursuit of justice for investors who suffered financial losses due to the alleged misconduct by NantHealth and its executives. We believe that our clients, who share similar circumstances, should be allowed to proceed collectively, streamlining the legal process and ensuring fair representation.”​

The class certification motion is a pivotal development in the ongoing litigation, as it seeks to bring together affected investors under unified legal representation. If granted, class certification would enable a more efficient and coordinated litigation process for the Securities Act and Exchange Act Classes.​

The Kehoe Law Firm remains committed to diligently representing the interests of investors and will continue to pursue legal avenues to hold NantHealth and its executives accountable for the alleged securities law violations.​

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.

Kehoe Law Firm, P.C. today announced a significant development in the securities class action against United Development Funding IV, United Development Funding V, and other related entities. Plaintiffs Mark Hay and Paul Brown, along with Defendant Whitley Penn LLP, have reached a settlement in principle in the matter of Hay v. United Development Funding IV, et al., Case No.: 4:16-cv-00188-M.​

This total settlement sum reflects the resolution of more than two years of rigorous litigation and thorough investigation. It comprises the fixed cash amount of $10,435,725 and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. 

Kehoe Law Firm partner Michael Yarnoff expressed his optimism about the settlement, stating, “We are pleased to announce this significant step toward resolution in the UDF Securities Litigation. The settlement in principle, including both fixed and contingent amounts, reflects the hard work and dedication of all parties involved. We look forward to moving this settlement through the judicial process and hope to obtain court approval soon.” 

As part of the settlement process, the Parties have also agreed to delay submission of class settlement documentation while active discussions with other defendants continue. They remain committed to consummating the settlement in principle and are prepared to promptly notify the Court if any obstacles arise. 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

Kehoe Law Firm Announces Partial Settlement with Citigroup in the FX Indirect Purchaser Litigation –$9,950,000 and “Reasonable Cooperation.”

Kehoe Law Firm, on behalf of its client, FX Primus Ltd., announced today that a partial settlement has been reached in the FX Indirect Purchaser litigation with defendant Citigroup Inc., Citibank, N.A., Citicorp, and Citigroup Global Markets Inc. (collectively, “Citigroup”), partially settling claims in Contant, et al. v. Bank of America Corp., et al., No. 1:17-cv-03139 (LGS) (S.D.N.Y.)  and consolidated actions.​

“In the pursuit of justice, we are pleased to announce a significant step forward in the litigation through a partial settlement with Citigroup Inc., on behalf of our client, FX Primus Ltd,” according to Kehoe Law Firm Partner, John A. Kehoe.​

Pursuant to the terms of the settlement, Citigroup agreed to pay an amount of $9,950,000 and to provide “reasonable cooperation” in the continued prosecution of the Action against the non-settling defendant banks, as set forth in the Settlement Agreement.​

The lawsuit alleges that prominent financial institutions, including Citigroup, Standard Chartered, Société Générale, Bank of America, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBC, RBS, and UBS (the “Defendants”), conspired to fix foreign currency (“FX”) instrument prices.

This alleged collusion resulted in overcharging individuals and entities when purchasing FX Instruments directly from a Defendant or one of their alleged co-conspirators

from December 1, 2007, through July 17, 2020, and the purchaser lived in NY, AZ, CA, FL, IL, MA, MN, or NC at the time of the transaction.​

According to Mr. Kehoe, “as we continue to prosecute the action against other defendants, the cooperation secured from Citigroup stands as a formidable tool, empowering us to pursue justice and fair compensation for those who may have been affected by the manipulation of foreign currency instrument prices.”  In this pursuit, “we remain steadfast, resolute, and unwavering in our commitment for a fair and just outcome for our clients.”​

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.