Discover Financial Services Class Action Lawsuit - DFS
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The Discover Financial class action lawsuit seeks to represent purchasers or acquirers of Discover Financial Services (NYSE: DFS) common stock between February 21, 2019 and August 14, 2023, inclusive (the “Class Period”). Captioned Mannacio v. Discover Financial Services, No. 23-cv-06788 (N.D. Ill.), the Discover Financial class action lawsuit charges Discover Financial and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Discover Financial class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Discover Financial class action lawsuit must be filed with the court no later than October 31, 2023.
CASE ALLEGATIONS: Discover Financial is a financial services company that owns and operates Discover Bank, an online bank that offers various savings and credit products.
The Discover Financial class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Discover Financial maintained deficient risk management and compliance procedures; (ii) as a result, Discover Financial has, among other things, 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; and (iii) the above issues, when they became known, would subject Discover Financial to significant financial exposure, regulatory scrutiny, and reputational harm.
The Discover Financial class action lawsuit further alleges that on July 20, 2022, Discover Financial disclosed that it “is suspending until further notice its existing share repurchase program because of an internal investigation relating to its student loan servicing practices and related compliance matters.” The Discover Financial class action lawsuit alleges that on this news, the price of Discover Financial common stock fell nearly 9%.
The Discover Financial class action lawsuit further alleges that on July 19, 2023, Discover Financial disclosed that it had misclassified certain credit card products over an approximate 15-year period as a result of an acknowledged compliance failure. The complaint alleges that specifically, Discover Financial disclosed that it had incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier, beginning around mid-2007. The complaint further alleges Discover Financial disclosed receipt of a proposed consent order from the Federal Deposit Insurance Corporation in connection with an unrelated regulatory matter. The Discover Financial class action lawsuit alleges that on this news, the price of Discover Financial common stock fell nearly 16%.
The Discover Financial class action lawsuit further alleges that on August 14, 2023, Discover Financial announced that its Board of Directors and CEO, defendant Roger Hochschild, “have agreed that Hochschild will step down as Chief Executive Officer and President and as a member of the Board,” effective immediately. The complaint further alleges that on the same day, Discover Financial also disclosed that its credit card delinquency rate 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 30, 2023. The Discover Financial class action lawsuit further alleges that on the next day, August 15, 2023, Seeking Alpha published an article reporting on analyst speculation that defendant Hochschild’s resignation was directly tied to Discover Financial’s recently reported regulatory and risk oversight issues. The complaint alleges that following these developments, the price of Discover Financial common stock declined more than 9%.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Discover Financial common stock during the Class Period to seek appointment as lead plaintiff of the Discover Financial class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Discover Financial class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Discover Financial class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Discover Financial class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.