Skip to Content

Discover Financial Services

Company NameDiscover Financial Services
Stock SymbolDFS
Class PeriodFebruary 21, 2019 to August 14, 2023
Lead Plaintiff Motion DeadlineOctober 31, 2023

On July 20, 2022, Discover released its second quarter 2022 financial results, disclosing that it was “suspending until further notice its existing share repurchase program because of an internal investigation relating to its student loan reservicing practices and related compliance matters.” On this news, Discover’s stock price fell $9.80, or 8.9%, to close at $100.00 per share on July 21, 2022, thereby injuring investors.

Then, on July 19, 2023, Discover disclosed that it incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier since mid-2007. Additionally, the Company disclosed receipt of a proposed consent order from the Federal Deposit Insurance Corporation in connection with an unrelated regulatory matter. On this news, Discover’s stock price fell $19.40, or 15.9%, to close at $102.45 per share on July 20, 2023.

 

Then, on August 14, 2023, Discover announced that its CEO had resigned. That same day, the Company also disclosed that its credit card delinquency rate had increased to 3.00% for the 24-month period ended July 31, 2023, as compared to 2.86% for the 24-month period ended June 31, 2023 – a higher level than the pre-pandemic rate of 2.37% in July 2019. On this news, Discover’s stock price fell $9.69, or 9.4%, to close at $92.96 per share on August 15, 2023, thereby injuring investors further.

 

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) DFS maintained deficient risk management and compliance procedures; (2) as a result of the foregoing deficiencies, the Company had, inter alia, failed to comply with applicable student loan servicing standards, misclassified certain credit card accounts, overcharged customers, and failed to stem its ballooning credit card delinquency rate; (3) the foregoing issues, when they became known, would subject DFS to significant financial exposure, regulatory scrutiny, and reputational harm; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Submit Your Information

If you suffered a loss on your Discover Financial Services investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

Shares Purchased

Number of SharesBuy DatePrice Per ShareAdd

Shares Sold

Number of SharesSell DatePrice Per ShareAdd