Synchrony Bank, a leading consumer financial services company, faced two significant class action lawsuits in 2022. These lawsuits highlight the importance of consumer protection and responsible business practices.
TCPA Class Action Lawsuit
In August 2022, Synchrony Bank agreed to settle a class action lawsuit for $2.6 million. The lawsuit alleged that Synchrony violated the Telephone Consumer Protection Act (TCPA) by making unsolicited robocalls to consumers’ cell phones. The settlement will provide compensation to individuals who received these calls.
Securities Fraud Class Action Lawsuit
In October 2022, Synchrony Bank settled a securities fraud class action lawsuit for $34 million. The lawsuit alleged that Synchrony misled investors about its underwriting practices, leading to inflated stock prices. The settlement will provide compensation to investors who purchased Synchrony stock during the class period.
Key Takeaways from the Class Action Lawsuits
These class action lawsuits serve as important reminders for businesses of all sizes. It is crucial to adhere to consumer protection laws and maintain transparent business practices. Failure to do so can result in significant legal and financial consequences.
FAQs
What is the Telephone Consumer Protection Act (TCPA)?
The TCPA is a federal law that regulates telemarketing calls to consumers’ cell phones. The law prohibits unsolicited robocalls to cell phones unless the consumer has provided their consent.
What is securities fraud?
Securities fraud occurs when a company or its representatives make false or misleading statements about its financial condition or business practices, causing investors to make investment decisions they would not have otherwise made.
What are the consequences of violating the TCPA or committing securities fraud?
Companies that violate the TCPA or commit securities fraud may face significant penalties, including fines, damages, and corrective actions. In some cases, individuals involved in these violations may also face criminal charges.
What can consumers do to protect themselves from TCPA violations and securities fraud?
Consumers can protect themselves by registering their phone numbers with the National Do Not Call Registry, carefully reviewing investment opportunities before investing, and reporting suspected TCPA violations or securities fraud to the appropriate authorities.
What can businesses do to avoid TCPA violations and securities fraud?
Businesses can avoid TCPA violations by obtaining consumers’ consent before making telemarketing calls to their cell phones and ensuring that their telemarketing campaigns comply with the TCPA’s requirements. Businesses can avoid securities fraud by maintaining accurate and transparent financial records, making truthful disclosures to investors, and establishing strong corporate governance practices.
What is the importance of class action lawsuits in consumer protection?
Class action lawsuits play a vital role in consumer protection by holding businesses accountable for their actions and deterring future violations. Class action lawsuits also provide a mechanism for consumers to seek compensation for harm they have suffered.
Conclusion
The Synchrony Bank class action lawsuits of 2022 highlight the importance of consumer protection and responsible business practices. Businesses should strive to adhere to all applicable laws and regulations to avoid potential legal and financial consequences. Consumers should also be aware of their rights and take steps to protect themselves from potential harm.
References
[1] Synchrony Bank TCPA Class Action Lawsuit Settlement http://www.lucastcpasettlement.com/frequently-asked-questions.aspx
[2] Synchrony Bank Securities Fraud Class Action Lawsuit Settlement https://www.blbglaw.com/
[3] Telephone Consumer Protection Act (TCPA) https://consumer.ftc.gov/
[4] Securities Fraud https://www.sec.gov/Protecting-You