Private-label credit card provider Synchrony Financial faces a shareholder suit alleging it misled investors over the effect of credit restrictions on a canceled partnership with retail giant Walmart.
Synchrony Financial in 2017 told investors it wasn’t getting pushback from card partners over changes to its underwriting standards, despite private complaints from Walmart executives, according to a Nov. 2 complaint in the U.S. District Court for the District of Connecticut. Walmart the same day sued the card issuer over problems with the companies’ ongoing split.
The company tightened its credit standards after “poor loan performance” led to poor earnings performance in ...
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