Bloomberg Businessweek

A Federal Contract, an Email, And a Big Stock Move

Did traders get early word of Performant’s student loan deal?

On Jan. 11 a group of 42 debt collection agencies awaited word on which ones had won contracts from the U.S. Department of Education. The federal government has been the main lender to student borrowers since 2010, and the deal to collect on unpaid student loans could be worth hundreds of millions of dollars.

Shortly after 1:30 p.m., an employee from the Education Department sent emails to 40 of the companies to let them know they weren’t chosen. The agency publicly announced the winners in a court filing at 3:47 p.m. During the time in between, investors bought up shares of one of the winning bidders, Performant Financial Corp., a Livermore, Calif., company that once had

You're reading a preview, sign up to read more.

More from Bloomberg Businessweek

Bloomberg Businessweek3 min readSociety
The Problem With A Quick ‘Yes’ to Drugs
One in 10 babies in the U.S. is born premature, with elevated rates of disability and death. For almost a decade, a drug called Makena has been used to reduce the risk of further instances of early delivery for women who’ve previously given birth pre
Bloomberg Businessweek4 min read
If you’ve ever used a home DNA kit, opened wide and said “ahh,” or measured the depth of a knife wound in a stabbing victim, chances are you’ve used a device made by Puritan Medical Products Co. And if you’re tested for the coronavirus that causes Co
Bloomberg Businessweek4 min readSociety
Collateral Damage
• Measures to control the epidemic are crushing a sector employing more than 1 in 10 U.S. workers