Discover Financial Services: Company Investigated by the Portnoy Law Firm
Investors can contact the law firm at no cost to learn more about recovering their lossesLOS ANGELES, Aug. 25, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Discover Financial Services (NYSE: DFS) investors that the firm has initiated an investigation into possible securities violations and may file a class action on behalf of investors. Discover investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
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.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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