Home Banking & Finance Walmart drops lawsuit against Stamford’s Synchrony

Walmart drops lawsuit against Stamford’s Synchrony

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All is apparently forgiven between Walmart and Stamford’s Synchrony, with the retail giant dropping its $800 million lawsuit against the financial services company and extending the strategic partnership between its Sam’s Club segment and Synchrony.

Margaret Keane of Synchrony financial
Synchrony President and CEO Margaret Keane.

The Sam’s Club arrangement involves offering club members enhanced financing options through the Sam’s Club-branded credit cards. Synchrony will continue to manage and service the credit card programs across the retailer’s nearly 600 clubs.

Synchrony also has reached an agreement on the sale of the Walmart loan portfolio it currently services to Capital One. The portfolio is expected to transfer late in the third quarter or early in the fourth quarter of this year and could reportedly be worth up to $10 billion.

The retailer filed a breach-of-contract suit against Synchrony last November after Walmart chose Capital One to handle its private-label and co-branded credit cards, following a 25-year partnership with Synchrony.

“We are very pleased to have reached these agreements. Obtaining certainty around the Walmart portfolio and a renewal on Sam’s Club is a great outcome for the company,” said Synchrony President and CEO Margaret Keane. “We look forward to continuing to deliver innovative products and excellent customer service to Sam’s Club members.”

Synchrony said it had also renewed and extended its card relationship with Amazon.

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