Ex-Discover Exec Sues to Recoup Pay Ahead of Capital One Merger

Core Viewpoint - A lawsuit filed by former Discover executive Diane Offereins alleges wrongful revocation of millions in compensation and claims she was used as a scapegoat for the company's misclassification of credit cards amid regulatory scrutiny of Discover's planned $35 billion merger with Capital One [1][2][3] Group 1: Lawsuit Details - The lawsuit claims that Discover arbitrarily canceled Offereins' unvested stock awards worth approximately$8 million without a clear basis, attributing part of the blame for misclassification issues to her [1] - Offereins is noted as the only retired female executive to lose equity during the investigation, while other executives received reduced cash bonuses or severance packages without losing equity awards [2] - Offereins asserts that she was not responsible for the card classification and had raised concerns about the issues, advocating for changes [3] Group 2: Company Background and Regulatory Context - Discover admitted to overcharging merchants for over a decade due to misclassification of card accounts, as stated by former CEO Roger Hochschild [2] - The company is currently offering $1.2 billion to settle class-action litigation from overcharged merchants [2] - Regulatory scrutiny of the Discover/Capital One merger is heightened, with concerns raised by Rep. Maxine Waters regarding its impact on competition, financial stability, and consumer costs [3]