Retail giant Walmart has reached an agreement to drop the lawsuit it filed against card issuer Synchrony Financial in November last year.
In its lawsuit, Walmart alleged that Synchrony breached the terms of a long-running credit card contract.
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Furthermore, it was alleged that Synchrony underwriting standards financially harmed the retailer.
Walmart was seeking nearly $800m in damages at the US District Court of the Western District of Arkansa.
This development came after Walmart replaced the company in July by signing a new private label and co-branded credit card agreement with Capital One.
Concurrent with the dropping-of-lawsuit announcement, Synchrony also deepened its collaboration with Walmart subsidiary Sam’s Club for branded credit cards.
Under the extended agreement, the company will continue to manage and provide services for the credit card programmes of members. The retailer has nearly 600 clubs.
Sam’s Club credit cards are said to offer multiple benefits such as cashback, zero annual fee, one card convenience and online account management.
Furthermore, Synchrony has signed an agreement to sell the Walmart loan portfolio that it currently services. The transfer is expected to occur in the third quarter or early fourth quarter of this year.
Synchrony president and CEO Margaret Keane said: “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.
“Sam’s Club is a valued and longstanding partner. We look forward to continuing to deliver innovative products and excellent customer service to Sam’s Club members.”
