Synchrony’s Walmart Loss, Credit Woes Draw Derivative Suit

Synchrony Financial’s directors and officers misled investors about changes to the company’s underwriting practices which hurt relationships with key business partners, a March 11 suit said.

The financial services firm relaxed its standards and loaned to riskier borrowers in order to maintain the growth of its credit card business, the shareholder derivative complaint filed in the U.S. District Court for the District of Connecticut said.

The change in underwriting practices led Walmart Inc. to move its branded card business to another firm, the suit said.

Other Synchrony investors filed a would-be class action involving similar allegations in November.

Causes of ...