Synchrony Financial Must Face Investor Lawsuit on Walmart Split

Synchrony Financial lost its bid to throw out allegations it misled investors about credit changes that led to the loss of a Walmart Inc. partnership after a federal judge in Connecticut found the complaint sufficient to move forward.

Investors accuse the private label credit card maker of materially misleading them about whether retail partners were pushing back on the credit changes. They properly alleged that a reasonable investor could have seen the challenged statement as significantly altering the total mix of available information, the U.S. District Court for the District of Connecticut said.

Judge Victor A. Bolden dismissed the ...