SAN FRANCISCO, CA / ACCESSWIRE / September 18, 2023 / Hagens Berman urges Discover Financial Services (NYSE:DFS) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 21, 2019 - Aug. 14, 2023
Lead Plaintiff Deadline: Oct. 31, 2023
Contact An Attorney Now: [email protected]
Discover Financial Services (NYSE: DFS) Securities Fraud Class Action:
The complaint alleges that Defendants made false and misleading statements and failed to disclose that: (1) DFS maintained deficient risk management and compliance procedures; (2) as a result of these deficiencies, DFS had, among other things, 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; and (3) these issues, when they became known, would subject DFS to significant financial exposure, regulatory scrutiny, and reputational harm.
The truth began to emerge on July 20, 2022, when DFS announced that it was suspending its share repurchase program "because of an internal investigation into its student loan servicing practices and related compliance matters."
Then, on July 19, 2023, DFS disclosed that it had misclassified certain credit card products over an approximate 15-year period as a result of an acknowledged compliance failure. DFS stated that correction of the misclassifications negatively impacted its retained earnings and certain previous interim period net income.
DFS also revealed that it received a proposed consent order from the FDIC in connection with an unrelated regulatory matter.
Finally, on Aug. 14, 2023, DFS announced that Roger C. Hochschild resigned from his position as CEO and President and as a member of the company's board. The same day, DFS reported a significant increase in its credit card delinquency rate.
"We're focused on investors' losses and are investigating whether DFS may have concealed problems with its compliance and risk management practices," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Discover Financial Services and have substantial losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Discover Financial Services should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP