Walmart Inc. filed a lawsuit Thursday against its longtime credit-card issuer Synchrony Financial, alleging the lender breached terms of its contract with the retail giant.
The lawsuit, filed in the U.S. District Court of the Western District of Arkansas, alleges that some of Synchrony’s underwriting standards financially harmed Walmart
WMT, +0.30%
. The merchant said it is seeking damages “in an amount to be proven at trial but estimated to be no less than $800 million.”
Synchrony
SYF, +1.94%
was Walmart’s exclusive credit-card issuer for nearly two decades until Walmart told Synchrony this summer it would replace the card issuer with Capital One Financial Corp.
COF, +0.00%
The Wall Street Journal reported last month that rising loan losses were one of Walmart’s biggest concerns with the Synchrony partnership. Those losses resulted in the company receiving less revenue than it had expected as part of the card deal with Synchrony.
An expanded version of this report appears on WSJ.com.
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