The lawsuits—CAPP, Inc. v. Discover Financial Services, Case No. 1:23-cv-04676; Lemmo’s Pizzeria, LLC v. Discover Financial Services, Case No. 1:23-cv-14250; and Support Animal Holdings, LLC v. Discover Financial Services, Case No. 1:23-cv-15297—are pending in the U.S. District Court for the Northern District of Illinois. The lawsuits allege that, beginning in 2007, defendants Discover Financial Services, DFS Services LLC, and Discover Bank (together, “Discover”) misclassified certain Discover-issued consumer credit cards as commercial credit cards, which in turn caused merchants and others to incur excessive interchange fees. Discover denies the claims in the lawsuits, and the Court has not decided who is right or wrong. The parties have agreed to the Settlement to avoid the expense, uncertainty, and risks associated with litigation.

The classes have reached with Discover a settlement for a total amount of $1,225,311,279. 

Settlements reached and proof of claim submission date of May 18, 2026:

The lawsuits allege that, beginning in 2007, defendants Discover Financial Services, DFS Services LLC, and Discover Bank (together, “Discover”) misclassified certain Discover-issued consumer credit cards as commercial credit cards, which in turn caused merchants and others to incur excessive interchange fees. Discover denies the claims in the lawsuits, and the Court has not decided who is right or wrong. The parties have agreed to the settlement to avoid the expense, uncertainty, and risks associated with litigation. The proposed settlement, if approved, would resolve these lawsuits and provide benefits to Settlement Class Members, including those who submit claims and do not exclude themselves.

The “Settlement Class” is defined as: All End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a Misclassified Card Transaction during the period from January 1, 2007 through December 31, 2023 (the “Class Period.”)..

Definition of “Defendants”: Discover Financial Services, DFS Services LLC and Discover Bank (collectively, “Discover”).

Definition of “End Merchants”: Business entities that during the Class Period accepted a Discover-issued credit card directly from a person as payment in return for the delivery of goods or services. The following are different types of End Merchants:  • Indirect End Merchants accept or process Discover card transactions through Merchant Acquirers and/or Payment    Intermediaries; • Managed Active Direct End Merchants are entities that are active with a direct contractual relationship with Discover and   an assigned dedicated client relationship manager;  • Unmanaged Active Direct End Merchants are entities that are active with a direct contractual relationship with Discover   and without an assigned dedicated client relationship manager; and  • Inactive Direct End Merchants are entities with a direct contractual relationship with Discover that became inactive due   to no longer processing Discover card transactions during the Class Period.

Definition of “Merchant Acquirers”: Business entities that during the Class Period had an agreement with Discover to facilitate Discover credit card transactions for other businesses and was characterized by Discover’s rules and regulations as an Acquirer. Definition of “Payment Intermediaries”: Business entities that during the Class Period processed Discover credit card transactions on behalf of another business, but that is neither an End Merchant nor a Merchant Acquirer.