NEW YORK, May 4, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading New York securities firm, is investigating the Board of Directors and officers of Discover Financial Services ("Discover" or the "Company") (NYSE: DFS). The investigation focuses on possible breaches of fiduciary duties by the Board of Directors and/or officers of the Company in connection with the improper marketing and implementation of payment protection products.
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Specifically, the investigation concerns monetary damages and reputational harm suffered by the Company due to its directors and/or officers: (1) causing the Company to engage in fraudulent and illegal marketing practices in connection with its payment protection programs; (2) failing to maintain adequate internal controls over the Company's marketing and sales of fee-based financial products, including payment protection programs; and (3) falsely certifying to regulators that the Company had adequate internal controls sufficient to oversee the Company's compliance with all applicable legal and regulatory requirements. In the Company's 2011 Annual 10-K, filed with the Securities and Exchange Commission on January 26, 2012, the Company disclosed that it had learned that the Federal Deposit Insurance Corporation ("FDIC") and the Consumer Financial Protection Bureau had notified it that they planned to bring a joint enforcement action against the Company in relation to Discover's marketing practices with respect to its fee-based products, including its payment protection products. Previously, the Company had disclosed that the FDIC was investigating the Company's marketing practices. The threatened enforcement action comes on the heels of numerous class action lawsuits that have been filed against the Company regarding the sale of the Company's payment protection fee-based products.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action and derivative litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, through all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients.
If you own common stock in Discover and wish to obtain additional information, please visit us at www.faruqilaw.com/DFS or contact Michael J. Hynes, Esq. either via email at mhynes@faruqilaw.com or by telephone at (877) 247-4292 or (215) 277-5770.
Contact:
Faruqi & Faruqi, LLP
101 Greenwood Avenue
Jenkintown, PA 19046
Attn: Michael J. Hynes, Esq.
mhynes@faruqilaw.com
Toll Free: (877) 247-4292
Phone: (215) 277-5770
(NYSE: DFS)
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