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DFS.US
id: 1040, Created by , Scout

Discover Financial Services (DFS) Compliance Management System Failure Case

  • On September 29, 2023, Discover Financial (DFS) announced a Federal Deposit Insurance Corp. consent order for an audit of its consumer protections. On October 26, 2023, Discover Financial disclosed SEC investigation of its accounts’ classification. Discover Financial has allocated $376 million for misclassification refunds.
  • On it, $DFS fell 0.41%, losing $82M+ of shareholder value.
  • Investors may have grounds to suspect Discover Financial of failing to meet compliance requirements, which led to their losses.
On September 29, 2023, Discover Financial (DFS) announced that it had entered into a consent order with the FDIC addressing “shortcomings” in the bank’s compliance management system, in part by failing to establish a compliance management system to meet consumer protection laws.

On October 26, 2023, Discover Financial disclosed that it was cooperating with an SEC investigation regarding incorrectly classified certain credit card accounts. Discover Financial has allocated $376 million to provide refunds to merchants for this misclassification.

On this news, $DFS fell 0.41% and lost over $82 million of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect that Discover Financial failed to establish adequate compliance management system, which led to their losses.

The case is already under investigation by at least one of the reputable law firms.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
27 October 2023
Collecting participants…

Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Pa...

    Ticker
    DFS.US
    ISIN
    US2547091080
    CIK
    1393612
    Sector
    Financial Services
    Industry
    Credit Services
    Country
    USA
    Address
    2500 Lake Cook Road, Riverwoods, IL, United States, 60015