World News: 22:07 GMT Friday 7th December 2018. [Pomerantz LLP via Globe Newswire via SPi World News]
NEW YORK, Dec. 07, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Synchrony Financial (“Synchrony” or the “Company”) (NYSE: SYF). Such investors are advised to contact Robert S. Willoughby at or 888-476-6529, ext. 9980.
The investigation concerns whether Synchrony and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On April 28, 2017, Synchrony announced disappointing first quarter 2017 earnings driven by poor loan performance and disclosed that the Company would be setting aside over $1.3 billion in reserves to cover probable loan losses, a 21% increase in reserves over the prior quarter. Following this news, Synchrony’s stock price fell $5.25 per share, or 15.89%, to close at $27.80 per share on April 28, 2017.
On July 12, 2018, it was reported that Walmart Inc. (“Walmart”) was considering ending its relationship with Synchrony. On this news, Synchrony’s stock price fell $1.84 per share, or 5.29%, to close at $32.96 per share on July 12, 2018. Two weeks later, on July 26, 2018, multiple news outlets confirmed that Walmart had opted to replace Synchrony with one of the Company’s competitors. Following this announcement, Synchrony’s stock price fell $3.44 per share, or 10.29%, to close at $30.00 per share on July 26, 2018.
Then, on November 1, 2018, Walmart sued Synchrony, alleging that Synchrony had deliberately underwritten the Walmart/Synchrony credit card program in a way that exposes the program to significant unique credit risk. Walmart’s lawsuit seeks damages “in an amount . . . estimated to be no less than $800 million.” Following this news, Synchrony’s stock price fell $3.01 per share, or 10.22%, to close at $26.43 per share on November 2, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
Globe Newswire: 22:07 GMT Friday 7th December 2018
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