Discover Executive Files Major Gender and Age Discrimination Lawsuit
A high-profile discrimination lawsuit has shaken Discover Financial Services as former executive Diane Offereins alleges the company made her a scapegoat for regulatory issues while revoking over $7 million in stock awards. The case, filed in U.S. District Court for the Northern District of Illinois, centers on claims of gender discrimination and age discrimination that highlight broader corporate accountability issues.
Offereins’ lawsuit comes amid Discover’s public disclosure in July 2023 that it had incorrectly classified some individuals’ credit cards as “commercial” beginning around mid-2007—two years before she even joined the company’s payment network division. The timing raises critical questions about fair treatment and corporate responsibility when regulatory problems emerge.
The case has already survived Discover’s attempt to dismiss the charges, with U.S. District Judge Joan Gottschall ruling that Offereins “plausibly alleged violations of U.S. civil rights law and equal pay provisions.” This decision allows the lawsuit to move forward, potentially setting important precedents for executive treatment and discrimination in corporate America.
A Distinguished Career Cut Short
Diane Offereins built an impressive 25-year career at Discover Financial Services, a digital banking and payment services company. Recruited in 1998 to serve as Chief Information Officer, she demonstrated exceptional leadership that earned her increasing responsibilities within the organization.
After serving as CIO until 2009, Offereins transitioned into the role of Executive Vice President and President of Payment Services, where she led Discover’s payments network until her retirement in June 2023. Her long tenure and senior position made her one of the company’s most experienced executives, with deep institutional knowledge spanning decades of corporate evolution.
The trajectory of her career—from CIO to heading the payments division—reflected Discover’s confidence in her abilities and leadership. This background makes the circumstances surrounding her departure and the subsequent revocation of her stock awards particularly striking.
The Heart of the Allegations
Offereins’ lawsuit presents serious claims of discriminatory treatment, alleging violations of multiple federal and state laws, including Title VII of the Civil Rights Act, the Equal Pay Act, and the Age Discrimination in Employment Act. The core allegation centers on pay discrimination and unfair treatment based on her gender and age.
The lawsuit describes how Discover initiated a long-running internal investigation into potential misclassification of certain credit cards that charged merchants higher interchange fees. According to court documents, this misclassification issue was “well-known within the Company and had been actively discussed since at least 2017.”
What makes Offereins’ case particularly compelling is her assertion that she became an unfair target for problems that predated her involvement. The credit card misclassification began around mid-2007, yet she didn’t join the payment network side of the business until 2009. Despite this timeline, she alleges that Discover used the investigation findings to justify canceling her unvested stock awards under claims of “misconduct.”
The $7 Million Stock Revocation
The most dramatic aspect of the case involves Discover’s decision to cancel Offereins’ unvested stock awards worth more than $7 million. The timing of this action proved particularly damaging—occurring six months after her retirement and on the night before her shares were due to vest.
Court documents reveal a calculated sequence of events. Offereins retired in June 2023, was interviewed by outside counsel days later, and then received notification in January 2024 that her unvested awards were being canceled. The company claimed she had engaged in “willful or reckless violation of the company’s risk policies” based on findings from the internal investigation.
Perhaps most significantly, Offereins alleges she was the only woman and only retired executive committee member to lose equity as a result of the investigation. According to her lawsuit, male executives who were “actually responsible for the card classification issue emerged relatively unscathed” and “managed to reap their benefits.”
Legal Proceedings Gain Momentum
Offereins took decisive legal action, filing charges with both the Equal Employment Opportunity Commission (EEOC) and the Illinois Department of Human Rights (IDHR) in June 2024. The EEOC quickly issued her a Notice of Right to Sue, enabling her federal lawsuit.
Discover attempted to dismiss the case, arguing in court filings that it “championed her for empowering women” and that she “does not — and cannot — allege that a similarly situated male was treated differently.” However, Judge Gottschall rejected this defense strategy.
The judge’s ruling contained particularly damaging language for Discover, stating that “Offereins plausibly pleads that Discover viewed her as a convenient scapegoat because, as a woman who had reached retirement age, it believed it was considerably harder for her to ‘fight back’ than it would have been for her younger, male colleagues.”
Sean Hecker, Offereins’ attorney, welcomed the court’s decision, saying they were pleased to see “this important matter move forward.” The ruling ensures the case will proceed to discovery, where internal company communications and decision-making processes may be scrutinized.
Broader Implications for Corporate Accountability
This lawsuit highlights critical issues surrounding age discrimination and gender discrimination in corporate America, particularly at the executive level. The case demonstrates how companies might use internal investigations as cover for discriminatory actions, raising questions about due process and fair treatment.
The legal challenges in proving discrimination cases often center on demonstrating disparate treatment—showing that similarly situated individuals of different demographics were treated more favorably. Offereins’ allegations about being the sole woman and retiree to lose equity could provide compelling evidence if substantiated through discovery.
Corporate governance experts note that the timing of Discover’s actions—revoking awards just before vesting—appears calculated to maximize financial harm while minimizing the company’s exposure. Such tactics may backfire if they’re perceived as retaliatory or discriminatory by courts and juries.
The case also raises broader questions about accountability when regulatory issues span multiple executives and time periods. How companies allocate blame and consequences during investigations can reveal underlying biases and discrimination patterns.
Fighting Back Against Corporate Discrimination
The Offereins case represents more than one executive’s fight for fair treatment—it embodies the ongoing struggle against systemic discrimination in corporate America. When companies use their power to target vulnerable employees while protecting favored executives, they undermine principles of equal treatment and due process.
For individuals facing similar discrimination, this case highlights the importance of documenting unfair treatment and seeking the counsel of experienced lawyers. Employment discrimination cases require sophisticated legal strategies and a deep understanding of federal and state civil rights laws.
The outcome of this lawsuit could influence how courts evaluate discrimination claims involving executive compensation and retirement benefits. A favorable ruling for Offereins might encourage other victims of discrimination to challenge unfair corporate actions.
Whether you’re experiencing workplace discrimination or retaliation, understanding your legal rights remains crucial. Corporate accountability depends on individuals willing to stand up against unfair treatment, even when facing powerful institutional opponents.
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