Discover Financial Services (NYSE: DFS)

This lawsuit is for anyone who acquired securities in Discover Financial Services (NYSE: DFS) from February 21, 2019 through August 14, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that it had in place proper controls to prevent the Company from incorrectly classifying credit card accounts into its highest merchant and merchant acquirer pricing tier, but then incorrectly classifying those accounts anyway.

On July 19, 2023, Discover disclosed that it incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier since mid-2007. The Company further disclosed that, as of June 30, 2023, the Company’s consolidated financial statements reflect a liability of $365 million to provide refunds to merchants and merchant acquirers in connection with the misclassification. Discover also disclosed that its Audit Committee directed an external law firm to investigate the issue. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on August 14, 2023, Discover announced that its CEO had resigned. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Discover Financial Services (NYSE: DFS) from February 21, 2019 through August 14, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.