Discover Financial Services
08/25/2023
The law firm of Kirby McInerney LLP is investigating potential claims against Discover Financial Services (“Discover” or the “Company”) (NYSE: DFS). The investigation concerns whether Discover and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
Discover operates as a credit card issuer and electronic payment services company, offering student and personal loans, as well as savings products such as certificates of deposit and money market accounts.
On July 19, 2023, Discover disclosed in a statement that the company had misclassified some of its credit cards. Specifically, Discover revealed that it misclassified certain credit card accounts into its highest pricing tier, starting in 2007, meaning merchants were charged more than they should have been to accept the cards for payment. Discover indicated the company is discussing the matter with regulators and warned it could face future regulatory actions. Discover also disclosed that it received a proposed consent order from the FDIC for a consumer compliance issue which is different than the misclassification matter. On this news, the price of Discover shares declined by $19.40 per share, or approximately 16%, from $121.85 per share to close at $102.45 on July 20, 2023.
On August 14, 2023, Discover announced that its Board of Directors had accepted the resignation of Roger C. Hochschild from his positions as Chief Executive Officer and President of the Company and as a member of the Board, effective as of August 14, 2023. On this news, the price of Discover shares declined by $9.69 per share, or approximately 9.44%, from $102.65 per share to close at $92.96 on August 15, 2023.
Discover operates as a credit card issuer and electronic payment services company, offering student and personal loans, as well as savings products such as certificates of deposit and money market accounts.
On July 19, 2023, Discover disclosed in a statement that the company had misclassified some of its credit cards. Specifically, Discover revealed that it misclassified certain credit card accounts into its highest pricing tier, starting in 2007, meaning merchants were charged more than they should have been to accept the cards for payment. Discover indicated the company is discussing the matter with regulators and warned it could face future regulatory actions. Discover also disclosed that it received a proposed consent order from the FDIC for a consumer compliance issue which is different than the misclassification matter. On this news, the price of Discover shares declined by $19.40 per share, or approximately 16%, from $121.85 per share to close at $102.45 on July 20, 2023.
On August 14, 2023, Discover announced that its Board of Directors had accepted the resignation of Roger C. Hochschild from his positions as Chief Executive Officer and President of the Company and as a member of the Board, effective as of August 14, 2023. On this news, the price of Discover shares declined by $9.69 per share, or approximately 9.44%, from $102.65 per share to close at $92.96 on August 15, 2023.