Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Discover Financial Services (“Discover” or the “Company”) (NYSE: DFS) on behalf of Discover stockholders. Our investigation concerns whether Discover has violated the federal securities laws and/or engaged in other unlawful business practices.
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.
Recently, 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 “ the investigation is ongoing and is being conducted by a board-appointed independent special committee.”
On this news, the price of Discover stock fell by USD 8.49 per share, or 7.8 percent, to close at USD 100.00 per share on July 21, 2022.