Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Discover Financial Services ("DFS") (NYSE: DFS) common stock between February 21, 2019 and August 14, 2023, inclusive (the "Class Period").
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding DFS’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) DFS maintained deficient risk management and compliance procedures; (2) as a result of the foregoing deficiencies, the company had 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; (3) the foregoing issues, when they became known, would subject DFS to significant financial exposure, regulatory scrutiny, and reputational harm; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Current Status of Case:
On March 31, 2025, the Court granted Defendants’ Motion to Dismiss the case. On May 14, 2025, Lead Plaintiffs filed a Motion to Amend the Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.