SAN FRANCISCO, CA / ACCESSWIRE / September 18, 2023 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Discover Financial Services ("DFS" or the "Company") (NYSE:DFS) who suffered losses from purchasing or otherwise acquiring DFS common stock between February 21, 2019 and August 14, 2023 to contact us immediately regarding a pending securities fraud class action against DFS. The deadline to apply to be lead plaintiff is October 31, 2023.
Class Period: February 21, 2019 - August 14, 2023
Lead Plaintiff Motion Deadline: October 31, 2023
Case information: lieffcabraser.com/securities/discover
Contact us: Email or text [email protected] or call 1-800-541-7358
DFS is a financial services company that owns and operates Discover Bank.
The action alleges 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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Lieff Cabraser Heimann & Bernstein, LLP, with over 120 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, 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. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
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Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
[email protected]
SOURCE: Lieff Cabraser Heimann & Bernstein