Discover Leaders Sued Again Over Compliance Issues, Stock Drops

Discover Financial Services leaders misled investors about compliance failures that caused the company’s misclassification of its credit card products, preceding some of the stock’s worst selloffs in years, a shareholder derivative suit says.

Several current and former officers and directors allegedly assured the public on several occasions that Discover maintained robust risk management and compliance protocols, but in July 2022 revealed that it would suspend its share repurchase program during an internal investigation into its student loan servicing practices and compliance issues, says the suit filed Thursday in US District Court for the District of Delaware

The following day, the ...