Synchrony Financial (NYSE: SYF) Investor Securities Class Action Lawsuit 11/02/2018

If you purchased a significant amount of shares of Synchrony Financial (NYSE: SYF) between October 21, 2016 and November 1, 2018, and / or if you purchased any NYSE: SYF shares prior to October 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: January 2, 2019. NYSE: SYF investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Synchrony Financial
Case Name: 
Synchrony Financial Shareholder Class Action Lawsuit 11/02/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: SYF
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/02/2018
Class Period Begin: 
10/21/2016
Class Period End: 
11/01/2018
Court of Filing: 
U.S. District Court for the District of Connecticut
Deadline To File for Lead: 
01/02/2019
Summary: 

An investor in shares of Synchrony Financial (NYSE: SYF) filed a lawsuit in the U.S. District Court for the District of Connecticut over alleged violations of Federal Securities Laws by Synchrony Financial in connection with certain allegedly false and misleading statements made between October 21, 2016 and November 1, 2018.

Stamford, CT based Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans. Synchrony Financial reported that its annual Total Revenue rose from over $6.98 billion in 2016 to over $7.07 billion in 2017 and that its Net Income declined from $2.25 billion in 2016 to $1.93 billion in 2017.

Shares of Synchrony Financial (NYSE: SYF) grew to as high as $40.24 per share in early 2018.

On July 26, 2018, multiple news outlets reported that Walmart had chosen a competitor to replace Synchrony. Together, these two disclosures caused Synchrony's shares to decline nearly 14%. Then, on November 1, 2018, Walmart sued Synchrony accusing the Company of improper underwriting in connection with the Walmart/Synchrony credit card program.

According to the complaint the plaintiff alleges on behalf of purchasers of Synchrony Financial (NYSE: SYF) common shares between October 21, 2016 and November 1, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between October 21, 2016 and November 1, 2018, the Synchrony Financial falsely represented that its consistent and disciplined underwriting practices had led to a higher quality loan portfolio than those of its competitors. In truth, Synchrony Financial relaxed its underwriting standards and increasingly offered private-label credit cards to riskier borrowers to sustain growth. The truth about Synchrony's credit standards began to be revealed on April 28, 2017, when the Company announced disappointing first quarter 2017 earnings driven by poor loan performance.

The plaintiff alleges that following this disclosure, Synchrony Financial represented that it had tightened credit standards, but falsely characterized those underwriting changes as modest, while in fact, Synchrony Financial had made significant modifications to its underwriting policies, but concealed that these modifications were damaging its relationships with its retail partners, including Walmart.

Shares of Synchrony Financial (NYSE: SYF) declined to $26.13 per share on November 2, 2018.