Synovus Financial Corp. Former Employee Investigation

If you a former or current employee or are a member of any of Synovus Financial Corp. investment plans or profit sharing retirement plans and purchased or held Synovus Financial Corp. (Public, NYSE:SNV) shares or have information relating to this investigation, you should contact the Shareholders Foundation

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Synovus Financial Corp.
Affected Securities: 
NYSE: SNV

An investigation on behalf of former and current employees of Synovus Financial Corp. (Public, NYSE:SNV) concerning potential Employee Retirement Income Security Act (“ERISA”) Breach of Fiduciary Duty was announced.

Synovus Financial Corp. has been accused of securities fraud and according to a an investigation by a law firm under ERISA employees (former and current) of Synovus Financial Corp. (Public, NYSE:SNV) may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them. The Fiduciary duty refers to a company’s responsibility to the people who invest in it and if an employer puts the company’s interest ahead of the investors’, it has broken its fiduciary duty, so the investigation. Synovus Financial faces a securities class action lawsuit on behalf of purchasers of Synovus Financial Corp. (Public, NYSE:SNV) common stock during the period between January 24, 2008 and January 21, 2009 over alleged violations of Federal Securities Laws.

An investor in Synovus Financial has filed a proposed securities class action lawsuit in the United States District Court for the Northern District of Georgia against Synovus and other over alleged violations of Federal Securities laws. Subsequently an investigation on behalf of long term investors in Synovus Financial Corp. (Public, NYSE:SNV) was announced. According to the complaint the plaintiff alleges Synovus Financial Corp. (NYSE:SNV) and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between January 24, 2008 and January 21, 2009 materially false and misleading statements regarding Synovus Financial’s business and financial results and engaged in improper behavior which harmed Synovus’ investors by failing to disclose the extent of its large exposure to the Sea Island Company , a resort in Georgia, and the deteriorating condition of Sea Island.

The plaintiff accuses that Synovus also failed to adequately and timely record losses for its impaired loans, causing its financial results to be materially false and as a result of defendants alleged false statements, Synovus stock (NYSE:SNV) traded at artificially inflated prices between January 24, 2008 and January 21, 2009, reaching a high of $13.49 per share on February 1, 2008. Then, on January 22, 2009, so the lawsuit alleges, Synovus Financial reported a net loss for the fourth quarter of 2008 of $637 million, or $1.93 per share. The fourth quarter 2008 results included provision expense of $364 million and a $443 million non-cash goodwill impairment charge. According to the complaint on this news, Synovus stock fell to as low as $4.52 before it closed at $4.75 per share on January 22, 2009.

Synovus Financial Corp., located in Columbus, GA, is a diversified financial services company and a registered bank holding company. Synovus Financial provides financial services, including commercial and retail banking, financial management, insurance, mortgage and leasing services.

Synovus Financial reported a net income of $526.30million with Total Assets of $33.06448billion in 2007. Shares of Synovus Financial traded recently at $2.75 per share, down from a 52weekHigh of $23.70 per share.