Cases

Stichting Depositary APG, et al. v. Synchrony Financial, et al.

Court: District of Connecticut
Case Number: 3:18-cv-01818
Judge: Hon. Victor A. Bolden
Class Period: 10/21/2016 - 11/01/2018
Case Contacts: Jeroen van Kwawegen, Adam H. Wierzbowski, Kate Aufses

This is a securities class action filed on behalf of all persons and entities who purchased or otherwise acquired Synchrony Financial ("Synchrony" or the "Company") common stock between October 21, 2016 and November 1, 2018, inclusive (the Class Period), against Synchrony and certain of its senior executives (collectively, Defendants).

The action alleges that during the Class Period, Synchrony 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 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. This news caused Synchrony's shares to decline by $5.25 per share, or nearly 16%.

Following this disclosure, 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, 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. As a result of this disclosure, Synchrony shares declined by over 10%.

On February 5, 2019, the court appointed Stichting Depositary APG Developed Markets Equity Pool as Lead Plaintiff, and BLB&G as Lead Counsel, for the Class, and on April 5, 2019, Lead Plaintiff filed an Amended Class Action Complaint on behalf of a class of investors who purchased or otherwise acquired Synchrony common stock between October 21, 2016 and November 1, 2018, inclusive (the Class Period).

 

 

 

Other Cases of Interest

  • Synchrony Financial
    District of Connecticut Jeroen van Kwawegen, Adam H. Wierzbowski, Kate Aufses
  • DXC Technology Company
    Eastern District of Virginia John C. Browne, Jeroen van Kwawegen, Lauren McMillen Ormsbee, Jesse L. Jensen, Kyle Panton
  • Qualcomm, Inc.
    Southern District of California Salvatore J. Graziano, Jeroen van Kwawegen, Jonathan D. Uslaner, Richard D. Gluck, Rebecca E. Boon, Kyle Panton, Lauren M. Cruz
  • SCANA Corporation
    District of South Carolina (Columbia Division) John C. Browne, Jeroen van Kwawegen, Lauren McMillen Ormsbee, Kurt Hunciker, Michael Mathai, Kate Aufses
  • Stericycle, Inc.
    District of Illinois Eastern Division John C. Browne, Adam H. Wierzbowski, Julia Tebor
  • Frontier Communications Corp.
    District of Connecticut Katherine M. Sinderson, Jesse L. Jensen, Kate Aufses
  • Facebook, Inc. (Securities)
    Northern District of California John C. Browne, Jeremy P. Robinson, Kate Aufses
  • NVIDIA Corporation
    Northern District of California John C. Browne, Jeroen van Kwawegen, Jonathan D. Uslaner, Michael Mathai, Lauren M. Cruz
  • General Motors Company
    Eastern District of Michigan Salvatore J. Graziano, James A. Harrod, Adam H. Wierzbowski, Rebecca E. Boon