Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Synchrony Financial (NYSE: SYF) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 from October 21, 2016 and November 1, 2018. Synchrony is a consumer financial services company in the United States.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/synchrony-financial/
Synchrony Accused of Misrepresenting Its Underwriting Practices
According to the complaint, Synchrony falsely represented to investors that its “disciplined” underwriting practices had led to a higher quality loan portfolio than those of its competitors. In reality, Synchrony relaxed its underwriting standards and extended its private-label credit cards to riskier borrowers in order to sustain growth. Synchrony’s poor business practices led it to lose its partnership with its highest revenue-producing account, Walmart, which generated more than $10 billion in annual loan receivables and accounted for 19% of Synchrony’s overall retail card balances. After Walmart complained several times to Synchrony about its dissatisfaction with the company’s underwriting standards, Walmart sued Synchrony for exposing the Walmart/Synchrony credit card program to significant unique credit risk. Since the truth about Synchrony’s credit card standards became public, the company’s stock value has suffered.
Synchrony Shareholders Have Legal Options
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Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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