Discover Financial Services Securities Class Action Litigation


Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired Discover Financial Services (“DFS” or the “Company”) (NYSE: DFS) common stock between February 21, 2019 and August 14, 2023, inclusive (the “Class Period”).

If you purchased DFS common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 31, 2023. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

DFS investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.

Background on the DFS Securities Class Litigation

DFS is a financial services company that owns and operates Discover Bank.

The action alleges that DFS made false or misleading statements concealing that: (1) the Company’s risk management and compliance protocols were inadequate; and (2) as a result, DFS did not meet industry standards for servicing student loans, did not categorize credit card accounts correctly, and failed to curb its surging credit card delinquency rate.

On July 20, 2022, DFS announced it launched an internal investigation into to its “student loan servicing practices and related compliance matters.” The Company also announced it would pause its share buyback program. On this news, the price of DFS stock dropped $9.80 per share, or 8.93%, from the previous closing price of $109.80 on July 20, 2022, to close at $100.00 per share on July 21, 2022, on elevated trading volume.

On July 19, 2023, the Company announced it had had been misclassifying credit card accounts for the past fifteen years. Additionally, DFS announced it received a proposed consent order from the FDIC for a separate regulatory issue and the Company would again pause buybacks of shares. On this news, the price of DFS stock dropped $19.40 per share, or 15.92%, from the previous closing price of $121.85 on July 19, 2023, to close at $102.45 per share on July 20, 2023, on elevated trading volume.

On August 14, 2023, after market close, the Company announced its credit card delinquency rate had increased to 3.00% and its CEO and President Roger C. Hochschild was resigning. Then on August 15, 2023, Seeking Alpha reported on analyst commentary that Hochschild’s departure was directly connected to DFS’s recently publicized risk management woes. On this news, the stock price of the Company dropped $9.69 per share, or 9.44%, from the previous closing price of $102.65 on August 14, 2023, to close at $92.96 per share on August 15, 2023, on elevated trading volume.

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    About Lieff Cabraser

    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.