Discover
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On July 19, 2023, Discover Financial Services released its financial results for the quarter ending June 30, 2023, after market hours. In the disclosure, the company revealed that it had misclassified certain credit card accounts into its highest merchant and merchant acquirer pricing tier since around mid-2007. An external law firm, under the direction of the Audit Committee of the Board of Directors, was conducting an investigation into this matter. Discover was also engaged in discussions with regulators concerning this issue and matters related to corporate governance and risk management. Additionally, the company received a proposed consent order from the FDIC (Federal Deposit Insurance Corporation) regarding consumer compliance, but this order did not address the card product classification matter. The announcement indicated that further supervisory actions could potentially take place.
The news of the incorrect classification of credit card accounts and ongoing investigations raised concerns among investors. As a result, on July 20, 2023, Discover Financial Services’ share prices experienced a significant intraday decline of over 16.53%, or a drop of more than $20.03 per share. The sharp decrease in share price reflects the negative sentiment and uncertainty surrounding the company’s financial practices and regulatory issues, leading to a negative impact on investor confidence.
