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SYF.US
id: 660, Created by Stan Vick Chase, Scout
Synchrony Financial (SYF) $34M Shareholder Settlement
Pending settlement
How it works?
- Company agreed to pay compensation to its investors, to avoid further litigation
- We help you to prepare documents and file for compensation
- No credit-card required
19 January 2018
Class period Start12 July 2018
Class period End07 September 2023
Claim deadlineHow it works?
- Company agreed to pay compensation to its investors, to avoid further litigation
- We help you to prepare documents and file for compensation
- No credit-card required
Synchrony Financial (SYF) has reached a $34 million settlement in a long-running investor class action over practices said to have led to the end of its relationship with Walmart.
The complaint alleged that during the Class Period, Synchrony made false representations about its underwriting practices, claiming that they were consistently disciplined and led to a higher quality loan portfolio than its competitors. However, in reality, Synchrony had relaxed its underwriting standards and had been offering private-label credit cards to riskier borrowers to sustain growth.
- The truth about Synchrony's credit standards was first revealed on April 28, 2017, when the company announced disappointing first-quarter 2017 earnings driven by poor loan performance. This news caused Synchrony's shares to decline by nearly 16%. Despite this, the company represented that it had tightened credit standards, but falsely characterized those underwriting changes as modest. In fact, the company had made significant modifications to its underwriting policies but concealed that these modifications were damaging its relationships with its retail partners, including Walmart.
- On July 26, 2018, news outlets reported that Walmart had chosen a competitor to replace Synchrony, causing Synchrony's shares to decline by 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. This caused Synchrony's shares to decline by over 10%.
- Overall, the lawsuit alleged that Synchrony engaged in improper underwriting practices and made false representations about its loan portfolio quality to investors. The company's actions, according to the complaint, caused its stock price to be artificially inflated and resulted in financial harm to investors who purchased Synchrony's shares during the Class Period.
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Case number
3:18-cv-1818
Filing date
02 November 2018
Lead plaintiff
Stichting Depositary APG Developed Markets Equity Pool
Attorney
Bernstein Litowitz Berger & Grossmann LLP (New York, NY), Motley Rice LLC (Hartford, CT)
Court
District of Connecticut
Judge
Hon. Victor A. Bolden
Administrator
EPIQ
Court hearing date
31 July 2023
Exclusion deadline
10 July 2023
Objection deadline
10 July 2023
+$34,000,000
Total Settlement Amount