Robbins Geller Rudman & Dowd LLP announces an investigation into potential violations of U.S. federal securities laws by Discover Financial Services (NYSE: DFS) focused on whether Discover and certain of its officers made false and misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are a Discover investor who suffered a loss and would like to learn more, please provide your information here:
THE COMPANY: Discover is a digital banking and payment services company offering customers credit card loans, private student loans, personal loans, home loans, and deposit products. In 2015, the U.S. Consumer Financial Protection Bureau (“CFPB”) issued a consent order against Discover based on the CFPB’s finding that Discover engaged in illegal debt collection practices and that Discover misstated the minimum amounts due on billing statements as well as tax information consumers needed to get federal income tax benefits. In 2020, the CFPB issued a consent order against Discover based on its findings that Discover violated the prior CFPB order, the Electronic Fund Transfer Act, and the Consumer Financial Protection Act of 2010.
THE REVELATION: On July 20, 2022, Discover revealed that it was “suspending until further notice its existing share repurchase program because of an internal investigation relating to its student loan servicing practices and related compliance matters.” Discover further disclosed that “[t]he investigation is ongoing and is being conducted by a board-appointed independent special committee.”
On this news, the price of Discover stock fell by nearly 9%, damaging investors.
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