![]() ![]() In doing so, Navient likely responded to additional priorities, including the monetary expectations of outside counsel. Moreover, one of the states, Mississippi, retained outside counsel to represent the state in litigation. ![]() This is no small feat because states that sue independently can be vested in extracting more money and stricter injunctive relief than State AGs who are part of a working group. The Navient resolution represents a success since Navient reached a resolution with the multistate attorney general working group and with the six states that independently sued Navient. However, that is often much easier said than done. This enables a business to move forward in quick succession after a settlement, instead of having multiple settlements occurring over an extended time period. When faced with multiple regulatory fronts, many companies prefer to resolve the pending litigation and investigation through one concurrent settlement. Navient’s January 13 Resolution Achieves Partial Peace … Therefore, if one regulator takes action or opens an investigation, other regulators may take action to achieve different priorities, even if the issue involves the same conduct. This is because a company’s practices often implicate the statutory directives of multiple regulators. Multidistrict and class-action lawsuits.Īs we have discussed, multifront regulatory investigations are becoming increasingly common.Lawsuit by the Consumer Financial Protection Bureau (CFPB) and.Lawsuits filed by California, Illinois, Mississippi, New Jersey, Pennsylvania, and Washington.Importantly for all companies that may be the subject of a State AG investigation, Navient’s multistate agreement demonstrates the complexity of obtaining global peace - specifically, a release of liability from all investigating regulators and private actions.īased on publicly available information, Navient’s business practices garnered scrutiny from State AGs, the federal government, and the plaintiffs’ bar, including: The settlement resolves these State AGs’ investigations related to Navient’s lending practices, which we have analyzed in detail. (Navient), once the largest student loan servicer in the nation, reached a $1.85 billion settlement with a bipartisan coalition of 39 state attorneys general (State AGs) and a contemporaneous resolution with the Mississippi attorney general. ![]()
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