UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
Current Report
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| Item 8.01. | Other Events. |
On July 1, 2024, Discover Financial Services (the “Company”) and certain of its subsidiaries entered into a settlement agreement to resolve putative class actions filed on behalf of merchants allegedly affected by the card product misclassification. The settlement agreement, which is subject to court and other appropriate approvals, would resolve claims by parties affected by the card product misclassification (merchants, merchant acquirers, and other intermediaries). As of March 31, 2024, the Company had increased its liability to provide refunds as a result of the card product misclassification to $1.2 billion. The Company expects all payments under the settlement agreement to be covered by that amount.
Additional information regarding the card product misclassification can be found in the Company’s quarterly report on Form 10-Q for the period ended March 31, 2024.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DISCOVER FINANCIAL SERVICES | ||||||
| Date: July 3, 2024 | By: | /s/ Hope D. Mehlman | ||||
| Name: | Hope D. Mehlman | |||||
| Title: | Executive Vice President, Chief Legal Officer, General Counsel and Corporate Secretary | |||||