Discover Plunges as Buybacks Halted Over Compliance Lapses (1)

Discover Financial Services fell the most in more than three years after the lender disclosed that it was in discussions with regulators over how it misclassified some of its credit cards.

The stock was the worst performer in the S&P 500 on Thursday, tumbling 16%, the biggest decline since March 2020. A day earlier, the company said in a statementthat it will suspend buybacks while it begins an internal review of compliance, risk management and corporate governance.

Discover said that it misclassified certain credit-card accounts into its highest pricing tier, starting in 2007, meaning merchants were charged more than ...