Shareholder investigation of Synchrony Financial
Synchrony Financial (SYF) Accused of Misrepresenting Its Underwriting Practices
According to the 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 Financial (SYF) 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 Financial (SYF) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.