Kaskela Law LLC announces that it is investigating Discover Financial Services (NYSE: DFS) (“Discover Financial”) on behalf of the company’s long-term investors.
On July 19, 2023, Discover Financial disclosed in a statement that the company had misclassified some of its credit cards. Specifically, Discover Financial revealed that it misclassified certain credit card accounts into its highest pricing tier, starting in 2007, meaning merchants were charged more than they should have been to accept the cards for payment. Discover Financial indicated the company is discussing the matter with regulators and warned it could face future regulatory actions. Discover Financial also disclosed that it received a proposed consent order from the FDIC for a consumer compliance issue which is different than the misclassification matter. Following this news, shares of the company’s stock declined $19.40 per share, or 16% in value, to close on July 20, 2023 at $102.83 per share, on unusually heavy trading volume.
Then, on August 14, 2023, Discover Financial disclosed that Roger Hochschild was stepping down as President and CEO as well as giving up his position as a member of the company’s board of directors. Following this news, shares of the company’s stock declined an additional $9.69 per share, or 9.5% in value, to close on August 15, 2023 at $92.96 per share, again on unusually heavy trading volume.
The investigation seeks to determine whether the members of Discover Financial’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above.
Long-term Discover Financial investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email (skaskela@kaskelalaw.com / abell@kaskelalaw.com) or online at https://kaskelalaw.com/cases/discover-financial-services/, for additional information about this investigation and their legal rights and options.
Kaskela Law exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230907153233/en/
Contacts
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
