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
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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