NEW YORK, Nov. 8, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Synchrony Financial ("Synchrony" or the "Company") (NYSE:SYF) of the January 2, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Synchrony stock or options between October 21, 2016 and November 1, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/SYF. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the District of Connecticut on behalf of all those who purchased Synchrony common stock between October 21, 2016 and November 1, 2018 (the "Class Period"). The case, Retail Wholesale Department Store Union Local 338 Retirement Fund v. Synchrony Financial et al, No. 18-cv-01818 was filed on November 2, 2018 and has been assigned to Judge Victor A. Bolden.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that Synchrony's loosening of its underwriting standards caused the Company's loan portfolio to present both a greater credit risk and a markedly higher likelihood of defaults, reserves, and charge-offs.
Specifically, on April 28, 2017, the Company announced disappointing first quarter 2017 earnings, which were driven by poor loan performance.
On this news, the Company's stock price fell from $33.05 per share on April 27, 2018 to $27.80 per share on April 28, 2018—a $5.25 or 15.9% drop.
Then, on July 12, 2018, it was reported that Walmart—an important source of business for Synchrony—was considering ending its relationship with the Company. Two weeks later, on July 26, 2018, multiple news outlets confirmed that Walmart had chosen a competitor to replace Synchrony.
On this news, the Company's stock price fell from $33.44 on July 25, 2018 to a closing price of $30.00 on July 26, 2018—a $3.44 or 10.3% drop.
Then, on November 1, 2018, Walmart sued Synchrony, alleging that the company had deliberately underwritten the Walmart/Synchrony credit card program in a way that exposed the program to significant and unique credit risk.
On this news, the Company's stock price fell from $29.44 per share on November 1, 2018 to $26.43 per share on November 2, 2018—a $3.01 or 10.22% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Synchrony's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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