Discover Dodges Investor Suit Over Compliance Program Statements

Discover Financial Services beat investor allegations it concealed compliance issues, with a federal court ruling “vague and aspirational statements” about the online banking company’s risk management are insufficient to bring securities fraud claims.

In context, the alleged misstatements about Discover’s compliance efforts were too general to be misleading to a reasonable investor, forward-looking, or mere puffery, Judge Martha M. Pacold said in an opinion Monday dismissing the investors’ complaint. The US District Court for the Northern District of Illinois judge also said the lead plaintiffs failed to allege company leaders perpetuated a scheme to defraud investors based on Discover deciding ...