San Diego, CA -- (SBWIRE) -- 05/07/2012 -- An investigation on behalf of investors in NYSE:DFS shares was announced over possible breaches of fiduciary duties in connection with potential wrongdoing by certain directors and officers at Discover Financial Services in connection with potential improper marketing and implementation of payment protection products.
Investors who are a current (long-term) stockholders of G Discover Financial Services (NYSE:DFS), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible shareholder claims based on potential breaches of fiduciary duties. Specifically, the investigation concerns whether certain directors and officers at Discover Financial Services.
Discover Financial Services reported that its Net Income rose from $764.79million for a 12months period ending on Nov. 30, 2010 to $2.22billion for the 12months period ending on Nov. 30, 2011.
On January 26, 2012, Discover Financial Services said that the Company has been named as a defendant in various legal actions and that it believes the estimate of the aggregate range of reasonably possible losses in excess of the amounts that the Company has accrued for legal and regulatory proceedings is up to $100 million. Discover Financial Services said that there are eight class action cases were filed between July 2010 and Mach 2011 in relation to the sale of Discover Financial Services’ payment protection fee product. These class actions challenge Discover Financial Services’ marketing practices with respect to its payment protection fee product to card members under various state laws and the Truth in Lending Act. In June 2011, Discover Financial Services entered into a preliminary global settlement of all of the pending class actions. The settlement remains subject to final approval by the court following completion of notice to the settlement class.
In December 2010, the Attorney General for the State of Minnesota filed a lawsuit against the Company. The lawsuit challenges the Company’s enrollment of Discover cardmembers in various fee based products under Minnesota law. In November 2011, the Company entered into a consent judgment in settlement of this lawsuit.
In August 2011, the Attorney General of West Virginia filed a lawsuit against Discover Financial Services over various claims related to its marketing and administration of various fee based products under West Virginia law. Also in August 2011, the Attorney General of Missouri issued a request for information to the Company in connection with an investigation to determine whether the Company has engaged in conduct that violates Missouri law in the marketing of its payment protection fee product to its credit card customers.
In November 2011, a lawsuit was filed against the Company by a cardmember. The plaintiff alleges that the Company contacted him, and members of the class he seeks to represent, on their cellular telephones without their express consent in violation of the Telephone Consumer Protection Act.
In addition, Discover Financial Services also said that it has been notified of a threatened enforcement action brought by the Federal Deposit Insurance Corporation ("FDIC") and the Consumer Financial Protection Bureau ("CFPB") discussed below. As to that matter, which is not included in the estimate discussed above. However, the exposure to loss for this matter could materially exceed the estimate discussed above, which could have a material adverse impact on the Company's near-term net income, so the Discover Financial Services.
Shares of Discover Financial Services (NYSE:DFS) surged from as low as $4.95 per share on March 6, 2009 to as high as $34.69 on May 1, 2012.
NYSE:DFS shares closed on May 4, 2012 at $33.52 per share.
Those who are current long term investors in Discover Financial Services (NYSE:DFS) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego