San Diego, CA -- (SBWIRE) -- 08/20/2012 -- An investor in shares of Discover Financial Services (NYSE:DFS) filed a lawsuit against directors of Discover Financial Services over alleged wrongdoing in connection with alleged improper deceptive marketing and implementation of payment protection products.
Investors who are a current (long-term) stockholders of 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 plaintiff alleges that the defendants exposed Discover Financial Services to tens of millions of dollars in damages as well as severely injured Discover's reputation, goodwill and standing in the business community by allegedly selling financial tools of questionable value and enrolling cardholders without their consent.
In fact, 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.
Furthermore, so the plaintiff, Attorneys General in West Virginia, Missouri and Hawaii have filed lawsuits accusing Discover Financial Services of charging consumers without their consent for add-on products such as identity theft protection and credit score tracking.
Last November a lawsuit was also filed by a cardmember against the Company. 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.
NYSE:DFS shares closed on August 17, 2012, at $37.77 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