Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Discover Financial Services (NYSE: DFS) (“Discover”) on behalf of investors who purchased shares of the company’s common stock between February 21, 2019 and August 14, 2023, inclusive.

On July 19, 2023, Discover disclosed that it had misclassified some of its credit cards into higher pricing tiers, and that it was discussing the matter with regulators and warned it could face future regulatory actions. Following this news, shares of the company’s stock declined $19.40 per share, or 16% in value, to close on July 20, 2023 at $102.83 per share, on unusually heavy trading volume.

Then, on August 14, 2023, Discover disclosed that Roger Hochschild was stepping down as the company’s President and CEO, and giving up his position as a member of the company’s board of directors. Following this news, shares of the company’s stock declined an additional $9.69 per share, or 9.5% in value, to close on August 15, 2023 at $92.96 per share, again on unusually heavy trading volume.

Most recently, on October 26, 2023, Discover Financial disclosed that it was “cooperating with an SEC investigation into the card product misclassification matter.”

Kaskela Law is investigating whether the members of Discover’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Long-term Discover investors – including investors who purchased shares of the company’s stock prior to February 21, 2019 – are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.