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Sallie Mae Lawsuit to Be Led by Investment Advisor, Judge Says

Westchester Capital Management, an investment adviser, will be lead plaintiff in a lawsuit against SLM Corp. brought by investors claiming the student lender hid that it lacked adequate reserves for loans to subprime borrowers.

U.S. District Judge William Pauley in Manhattan appointed Westchester Capital, adviser to two funds that lost more than $30 million after SLM shares fell, to lead the class-action, or group, lawsuit.