Product: Student loan

he XXXX XXXX XXXX announced that it has entered into a memorandum of understanding with plaintiffs ' counsel in connection with putative class action lawsuits filed in the Chancery Court for the State of Delaware and the Superior Court of the State of Connecticut in connection with ( i ) the Company 's merger agreement with XXXX XXXX XXXX and the merger contemplated thereby ; ( ii ) the Company 's agreement with XXXX XXXX pursuant to which affiliates of XXXX XXXX will acquire from the Company certain securitized federal student loans and related assets ; and ( iii ) the Company 's agreement with XXXX, XXXX, pursuant to which XXXX will acquire from the Company certain federal and private student loans and other assets. Under the terms of the memorandum, XXXX XXXX XXXX XXXX, the other named defendants, and the plaintiffs have agreed to settle the lawsuits, subject to court approval. The Company and the other defendants have agreed to settle the putative class action lawsuits in order to avoid the burden and expense of continued litigation. Pursuant to the terms of the memorandum, subject to the effectiveness of the XXXX Merger and certain other customary conditions, including court approval of a final settlement agreement, in consideration for the full settlement and release of all defendants, the amount of {$2.00} cash per share will be distributed by XXXX to those persons who are the Company 's stockholders of record immediately prior to the effective time of the XXXX Merger ( excluding XXXX, XXXX and their affiliates ). According to the complaint the plaintiff alleges that XXXX XXXX XXXX. majority owner XXXX XXXX. 's proposed {$600.00} million sale of the XXXX XXXX XXXX to XXXX XXXX XXXX shortchanged minority shareholders by valuing shares at less than half XXXX 's book value. XXXX XXXX. owns 80 percent of XXXX XXXX XXXX. On Friday, XX/XX/XXXX, XXXX XXXX XXXX XXXX ( XXXX : XXXX ),  announced that XXXX XXXX XXXX XXXX and XXXX XXXX XXXX have entered into an agreement for XXXX XXXX XXXX to acquire XXXX XXXX XXXX XXXX , and thereby become the owner of its private student loan business as well as {$4.00} billon of its private student loans. Under the terms of the agreement shareholders of XXXX XXXX XXXX will receive {$30.00} per XXXX share they hold. Separately and immediately prior to the transaction, XXXX XXXX will acquire from XXXX XXXX XXXX {$28.00} billion of securitized federal student loans and related assets and XXXX will acquire from XXXX XXXX XXXX certain federal and private student loans and other assets totaling {$8.00} billion. The transaction has been approved by the XXXX XXXX XXXX XXXX. 

XX/XX/XXXX In late XX/XX/XXXX, the Consumer Financial Protection Bureau ordered XXXX to compensate borrowers because, as it serviced loans, it charged erroneous late fees and interest ; misled borrowers about minimums, leading to overpayment ; didnt provide required information to borrowers who were denied loan co-signer release ; and misled borrowers about their eligibility to receive a tax deduction for interest payments. 

XXXX must pay borrowers a total of {$3.00} million. It will also pay a {$2.00} million fine and make changes to its servicing practices. 
Until XXXX submits its redress plan theres no telling how many affected consumers will be eligible, according to XXXX XXXX, a spokesperson for the CFPB. XXXX must submit the plan within 90 days of the order, and the plan must be deemed complete before borrowers can receive payment. XXXX will reach out to eligible borrowers. 
XXXX stopped servicing its private student loans earlier this year and transferred most of its portfolio to XXXX XXXX. If a borrowers loans are still serviced by XXXX, he or she will receive the payment as an account credit. Borrowers who no longer have a XXXX account will receive a check from XXXX or XXXX.