The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Synchrony Financial (“Synchrony”) (NYSE: SYF) who purchased shares between October 21, 2016 and November 1, 2018. The action, which was filed in the USDC for the District of Connecticut, alleges that the Company violated federal securities laws.
The complaint 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%.
Shareholders have until January 2, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
Through financing programs it has established with a varied set of national and local retailers, local businesses, manufacturers, buying organizations, industry associations, and healthcare service providers, Synchrony Financial (the “Company”) offers a variety of credit products. Through Synchrony Bank (the “Bank”), we principally provide private label, Dual Card, and general purpose co-branded credit cards, promotional financing, installment lending, and savings products covered by the FDIC.
A well-capitalized Synchrony Bank and the absence of any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board requiring Synchrony Financial to meet and maintain a specific capital level for any capital measure are prerequisites for Synchrony Financial to qualify as a well-capitalized savings and loan holding company. Synchrony Financial satisfies all criteria for being designated well-capitalized as of September 30, 2021.
According to Federal Reserve Board rules, Synchrony Financial complied with all applicable standards at September 30, 2021 and December 31, 2020. The Bank also satisfied all necessary standards at September 30, 2021 and December 31, 2020 to be deemed well-capitalized for the purposes of OCC rules and the Federal Deposit Insurance Act. The management does not feel that anything that has happened after September 30, 2021 has altered the capital category of either the Company or the Bank.
This Second Amended and Restated Synchrony Financial 2014 Long-Term Incentive Plan (the “Plan”) is designed to encourage certain officers, staff members, non-employee directors, and consultants of Synchrony Financial (and any successor thereto, the “Company”) and its Affiliates (as defined below) to acquire a proprietary interest in the company’s growth and performance, to create a greater incentive to contribute to the company’s future success, and for other purposes.
P.A. Rigrodsky Law is looking into possible claims that stockholders may have against Synchrony Financial (“Synchrony”) officers and directors. Against Synchrony, a class action lawsuit has been brought up. The lawsuit claims, among other things, that Synchrony misrepresented the fact that its rigorous and consistent underwriting procedures had produced a portfolio of loans of a higher caliber than those of its rivals. In order to maintain growth, Synchrony actually loosened its underwriting requirements and started to provide private-label credit cards to riskier applicants. On April 28, 2017, Synchrony disclosed weak first quarter 2017 results, mostly due to subpar loan performance. This is when the truth regarding Synchrony’s credit criteria began to surface.
Consumer financial services are offered by Synchrony Financial. Through partnerships with a number of national and local shops, small business owners, manufacturers, buying clubs, trade associations, and healthcare service providers, the company offers a variety of loan solutions. Retail Card, Payment Solutions, and CareCredit are the three sales platforms used to handle the company’s revenue-generating activities. It makes its credit products available through Synchrony Bank, a subsidiary (the Bank). It provides a variety of FDIC-insured deposit products through the Bank, including certificates of deposit, individual retirement accounts (IRAs), money market accounts, and savings accounts. The company provides three different credit product categories: consumer installment loans, commercial credit products, and credit cards. The business also provides a product for debt forgiveness.
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