Synovus shareholders receive class action settlement proposal

A securities class action settlement of a lawsuit against a financial firm was recently announced, reimbursing shareholders.

The U.S. District Court for the Northern District of Georgia noted that the lawsuit against Synovus Financial Corp., reached a proposed settlement of $11.75 million. This includes all shareholders who acquired stock in the company during the class period between Oct. 25, 2007 and April 22, 2009. Judge Owen Forrester will oversee a hearing to decide on a number of topics on Oct. 7, 2014.

The hearing will determine if the settlement amount for the class is fair, as well as the attorneys’ fees and other expenses. There will also be a decision on removing all of the liability from the company once the fees are paid out.

It is important for shareholders who acquired stock during that class period to submit the proof of claim and release form to the court by Sept. 22, 2014. This will make the shareholder eligible for a payout, and neglecting to do this will prevent them from collecting, but still making them bound to the litigation.

Those shareholders who have issues with the settlement can make their objections to the court, but this needs to be done by Sept. 16, 2014.

Lawsuit filed in 2009
A law firm announced in 2009 that it filed a securities class action lawsuit against the financial firm, due to potential federal securities law violations.

Law office Coughlin Stoia Geller Rudman and Robbins, LLP, noted that the litigation was filed against Synovus Financial’s leaders in the same court. This included all shareholders who acquired stock in the company during the class period between Jan. 24, 2008 and Jan. 21, 2009.

The allegations in the case surrounded Synovus Financial’s leaders potentially violating the Securities Exchange Act of 1934. This is due to the company making a number of statements that were potentially misleading or false regarding its financial condition and business results. There also was allegations that the company’s leadership took part in conduct that was detrimental to shareholders,

When the information was sent out to shareholders, it experienced a spike in stock price. However, this fell considerably in 2009, after the company noted it had a loss of $637 million during the fourth quarter of 2008. The stock dropped from the high point of $13.49 per share in early 2008 to $4.76 per share in early 2009.

For more information on this case or other class action litigations, please contact Sam Wankel at 203-987-4949 or info@battea.com.