What Investors Need to Know About the Discover Financial Class Action Lawsuit

If you suffered losses in Discover Financial stock contact Discover Financial stock loss lawyer

​The Discover Financial class action lawsuit seeks to represent purchasers or acquirers of Discover Financial Services (NYSE: DFS) common stock between February 21, 2019 and August 14, 2023, inclusive (the “Class Period”).  Captioned Mannacio v. Discover Financial Services, No. 23-cv-06788 (N.D. Ill.), the Discover Financial class action lawsuit charges Discover Financial and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
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If you suffered losses in Discover Financial stock and wish to serve as lead plaintiff in the class action against Discover Financial, please ​contact Discover Financial Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form. Lead plaintiff motions for the Discover Financial lawsuit must be filed with the court no later than October 31, 2023.

Read on to learn more about what investors should know about the Discover Financial class action lawsuit.​

introduction to the Discover Financial Class Action Lawsuit

​​The Discover Financial Class Action Lawsuit is a legal case that involves Discover Financial Services, a leading financial institution, and a group of plaintiffs who have filed a lawsuit against the company. The lawsuit alleges that Discover made false and/or misleading statements and/or failed to disclose, among other things, the company maintained deficient risk management and compliance procedures; 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.  When the corrective disclosure was finally made, it would subject Discover Financial to significant financial exposure, regulatory scrutiny, and reputational harm.

Discover Financial Services is a well-known credit card issuer and banking institution. It offers a wide range of financial products and services to consumers, including credit cards, loans, and banking accounts. However, the plaintiffs in this class action lawsuit claim that Discover failed to disclose material information to investors and made misleading statements about is student loan servicing standards, deficient risk management and compliance procedures, and ballooning cred card accounts. 

The plaintiffs argue that Discover's actions have caused financial harm to them and others who have been affected by these practices. They claim that they were misled by Discover's financial statements and were not aware of the truth until the corrective disclosure was made. As a result, shareholders suffered losses when the artificial inflation of the company's stock evaporated when the company finally made the corrective disclosure, causing the common stock to fall nearly 9%. 

The purpose of the Discover Financial Class Action Lawsuit is to bring justice to the affected individuals and seek compensation for their financial losses. By filing the lawsuit as a class action, the plaintiffs are able to consolidate their claims into one legal proceeding, making it more efficient and cost-effective. If successful, this lawsuit could result in monetary damages for the plaintiffs and potentially lead to changes in Discover's business practices.

In conclusion, the Discover Financial Class Action Lawsuit is an ongoing legal case in the early states that alleges shareholders were misled by Discover Financial Services. The plaintiffs claim that they were misled by Discover and suffered financial harm as a result. This class action lawsuit seeks to hold Discover accountable for its actions and seek compensation for the affected individuals.

ALLEGATIONS IN THE DISCOVER FINANCIAL CLASS ACTION LAWSUIT

Discover Financial is a financial services company that owns and operates Discover Bank, an online bank that offers various savings and credit products.

The Discover Financial class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Discover Financial maintained deficient risk management and compliance procedures; (ii) as a result, Discover Financial has, 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 (iii) the above issues, when they became known, would subject Discover Financial to significant financial exposure, regulatory scrutiny, and reputational harm.

The Discover Financial class action lawsuit further alleges that on July 20, 2022, Discover Financial disclosed that it “is 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.”  The Discover Financial class action lawsuit alleges that on this news, the price of Discover Financial common stock fell nearly 9%.

The Discover Financial class action lawsuit further alleges that on July 19, 2023, Discover Financial disclosed that it had misclassified certain credit card products over an approximate 15-year period as a result of an acknowledged compliance failure.  The complaint alleges that specifically, Discover Financial disclosed that it had incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier, beginning around mid-2007.  The complaint further alleges Discover Financial disclosed receipt of a proposed consent order from the Federal Deposit Insurance Corporation in connection with an unrelated regulatory matter.  The Discover Financial class action lawsuit alleges that on this news, the price of Discover Financial common stock fell nearly 16%.

The Discover Financial class action lawsuit further alleges that on August 14, 2023, Discover Financial announced that its Board of Directors and CEO, defendant Roger Hochschild, “have agreed that Hochschild will step down as Chief Executive Officer and President and as a member of the Board,” effective immediately.  The complaint further alleges that on the same day, Discover Financial also disclosed that its credit card delinquency rate increased to 3.00% for the 24-month period ended July 31, 2023, as compared to 2.86% for the 24-month period ended June 30, 2023.  The Discover Financial class action lawsuit further alleges that on the next day, August 15, 2023, Seeking Alpha published an article reporting on analyst speculation that defendant Hochschild’s resignation was directly tied to Discover Financial’s recently reported regulatory and risk oversight issues.  The complaint alleges that following these developments, the price of Discover Financial common stock declined more than 9% damaging investors who suffered losses in Discover Financial stock.

THE LEAD PLAINTIFF PROCESS IN THE DISCOVER FINANCIAL LAWSUIT

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Discover Financial stock to seek appointment as lead plaintiff in the Discover Financial class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 
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​A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.  An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Discover Financial stock and have further questions, contact Discover Financial stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a Discover Financial class action lawsuit if you suffered losses in Discover Financial stock.

CAN A NON-U.S. INVESTOR SERVE AS LEAD PLAINTIFF IN THE DISCOVER FINANCIAL STOCK CLASS ACTION LAWSUIT IF THEY SUFFERED LOSSES IN DISCOVER FINANCIAL?

​Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of whom have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors.  Thus, if a non-U.S. investor suffered losses in Discover Financial stock, they may move the Court to be appointed lead plaintiff in the Discover Financial class action lawsuit. 

THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE CLASS ACTION AGAINST DISCOVER FINANCIAL

Serving as a Lead Plaintiff in the Discover Financial class action lawsuit has several advantages and important benefits including:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred it the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a class action against Discover Financial if you suffered losses in Discover Financial stock. 

CAN I BE LEAD PLAINTIFF IN THE CLASS ACTION AGAINST DISCOVER FINANCIAL IF I AM LEAD PLAINTIFF IN ANOTHER CASE?

​​Yes, unless you have been a lead plaintiff in more than five securities class actions during any three-year period which is expressly prohibited by the securities laws. Otherwise, if you suffered losses in Discover Financial stock, you may move to be appointed lead plaintiff in the Discover Financial Lawsuit.

HOW WAS THE CLASS PERIOD DETERMINED IN THE CLASS ACTION AGAINST DISCOVER FINANCIAL?

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives.  The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading.  The class period ends when the truth is revealed to the investing public through a corrective disclosure.  
 
In order to be a part of the class in the Discover Financial class action lawsuit, you must have suffered losses in Discover Financial stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against Discover Financial.  ​

HOW CAN A DISCOVER FINANCIAL STOCK LOSS LAWYER HELP ME IF I SUFFERED LOSSES IN DISCOVER FINANCIAL STOCK?

​​​​A Discover Financial stock loss Lawyer is well-versed in the complex laws that govern the securities industry and litigation and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer. In most cases, if they have lost money due to mistakes, incompetence, or fraud by an investment professional.

While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discover every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct. ​Look for a securities lawyer with experience, high ethical standards, verifiable credentials, and a trustworthy reputation among his peers and the judiciary, as well as testimonials from previous clients and awards and recognitions.

One name that immediately pops up is nationally known and widely respected Nashville stock loss lawyer Timothy L.  Miles, who has valuable experience working on some of the nation's largest securities class actions and has received numerous awards, mostly due to his high ethical standards, including most recently being named a Top 25 Class action lawyer by the National Trial Lawyers Association, and has maintained an AV rating in securities litigation from Martindale-Hubble since 2014, a trusted legal rating service for over 130 years and was recently named a 2023 Elite Lawyer of the South by Martindale-Hubble for the fifth year in a row, and was a recipient of Avvo Client's Choice Award in 2021.  Therefore, you may start by contacting a trusted, well-respected, and ethical securities lawyer such as Mr. Miles about the Archer Aviation class action lawsuit. ​

IF THERE IS A SETTLEMENT IN THE DISCOVER FINANCIAL CLASS ACTION LAWSUIT, AND I DO NOT THINK IT IS FAIR, WHAT ARE MY OPTIONS AS A CLASS MEMBER?

​If you receive a notice that the Discover Financial class action lawsuit has been settled and you do not believe the settlement is fair but do not want to opt-out and file your own lawsuit, you may object to the settlement. You may object to any part of the settlement and the Court will consider all timely filed objections in the class action against Discover Financial. The notice will contain the date when any objections must be filed and include instructions on where to send your objection and include a date for the final hearing in the Discover Financial class action lawsuit if you would like to appear and be heard by the court in the class action against Discover Financial ​.

CONTACT A DISCOVER FINANCIAL STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN DISCOVER FINANCIAL STOCK ABOUT A DISCOVER FINANCIAL CLASS ACTION LAWSUIT

​If you suffered losses in Discover Financial stock, contact Discover Financial stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against Discover Financial. Call today and see what a Discover Financial stock loss lawyer can do for you if you suffered losses in Discover Financial stock.

DISCOVER FINANCIAL STOCK LOSS LAWYER TIMOTHY L. MILES

​Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing  shareholders, employees,  and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top 9National Trial Lawyers, National Trial Lawyers Association (2023), a superb ratedattorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846-6529
​Email: [email protected]