DFS DEADLINE ALERT: Kessler Topaz Meltzer & Check, LLP Announces Deadline in Discover Financial Services (DFS) Securities Fraud Class Action Lawsuit
RADNOR, Pa., Sept. 18, 2023
RADNOR, Pa., Sept. 18, 2023 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been against Discover Financial Services ("DFS") (NYSE: DFS). The action charges DFS with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of DFS's materially misleading statements and omissions to the public, DFS's investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: OCTOBER 31, 2023
CLASS PERIOD: FEBRUARY 21, 2019 THROUGH AUGUST 14, 2023
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
DFS'S ALLEGED MISCONDUCT
Throughout the Class Period, DFS represented that it maintained robust risk management and compliance protocols for its various business segments and needs, including, among other things, its customer credit card and student loan practices.
The truth, however, began to emerge on July 20, 2022, when DFS disclosed an ongoing internal investigation relating to its student loan servicing practices and related compliance matters. Following this news, DFS's stock price fell $9.80 per share, or 8.93%, to close at $100 per share on July 21, 2022.
Then on July 19, 2023, DFS revealed that the company had misclassified certain credit card products over an approximate 15-year period as a result of an acknowledged compliance failure. Additionally, DFS disclosed receipt of a proposed consent order from the Federal Deposit Insurance Corporation in connection with an unrelated regulatory matter. Following this news, DFS's stock price fell $19.40 per share, or 15.92%, to close at $102.45 per share on July 20, 2023.
Just several weeks later, on August 14, 2023, DFS announced that its CEO will step down, effective immediately. That same day, in an exhibit to an SEC filing, DFS 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 31, 2023. Analyst Seeking Alpha reported that day that DFS's credit card delinquency rate now stood at a higher level than the pre-pandemic rate of 2.37% in July 2019.
Finally, on August 15, 2023, Seeking Alpha published an article reporting on analyst's speculation that DFS's CEO's resignation was directly tied to the company's recently reported regulatory and risk oversight issues. Following this news, DFS's stock price fell $9.69 per share, or 9.44%, to close at $92.96 per share on August 15, 2023.
WHAT CAN I DO?
DFS investors may, no later than October 31, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages DFS investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against DFS, Mannacio v. Discover Financial Services., et al., Case No. 23-cv-06788, is filed in the United States District Court for the Northern District of Illinois.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
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SOURCE Kessler Topaz Meltzer & Check, LLP