A lawsuit was filed on behalf of investors in Discover Financial Services (NYSE:DFS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/18/2023 -- The Shareholders Foundation announced that an investor, who purchased shares of Discover Financial Services (NYSE: DFS), filed a lawsuit against Discover Financial Services over alleged violations of Federal Securities Laws.
Investors who purchased shares of Discover Financial Services (NYSE: DFS) have certain options and for certain investors are short and strict deadlines running. Deadline: October 31, 2023. NYSE: DFS investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On July 20, 2022, after trading hours, Discover Financial Services announced its financial results for its second quarter of 2022. Among other items, Discover Financial Services disclosed that "[t]he company 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 investigation is ongoing and is being conducted by a board-appointed independent special committee."
On August 14, 2023, Discover Financial Services 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, a member of the Board and a director and officer of Discover Bank . . . , each effective August 14, 2023." In a separate filing with the U.S. Securities and Exchange Commission that same day, Discover disclosed that its credit card delinquency rate increased to 3.00% in July from 2.86% in June and now stands at higher level than the pre-pandemic rate of 2.37% in July 2019.
Shares of Discover Financial Services (NYSE: DFS) declined from $122.50 per share on July 19, 2023, to as low as $89.83 per share on August 25, 2023.
The plaintiff claims that between February 21, 2019 and August 14, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that Discover Financial Services maintained deficient risk management and compliance procedures, that as a result of the foregoing deficiencies, the Company had, inter alia, 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, that the foregoing issues, when they became known, would subject Discover Financial Services to significant financial exposure, regulatory scrutiny, and reputational harm, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Discover Financial Services (NYSE: DFS) have certain options and should contact the Shareholders Foundation.
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