Synovus Class Action Lawsuit Settlement
Synovus Financial Corporation has settled the Securities Class Action Lawsuit filed against the corporation back in July of 2009.
The lawsuit, initially filed by the City of Pompano Beach General Employees' Retirement System, charged bank officials with deceiving investors by knowingly falsifying statements and misrepresenting the bank's exposure to risk in relation to loans for a Georgia resort.
Synovus granted the loan to Sea Island Resort for restructuring work as part of an overall expansion prior to the 2008 financial crisis which had a substantial negative impact on the tourism industry overall. Sea Island filed chapter 11 bankruptcy soon after in August of 2010 and was later sold to Oaktree Capital Management LP,