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It was revealed that Liu Da Meili had visited a cosmetic surgery clinic just days before her untimely death to undergo a liposuction procedure. Tragically, the surgery took a fatal turn, leading to complications that ultimately claimed her life. The news of her passing has sparked a wave of grief and mourning among her followers, who have expressed shock and disbelief at the sudden loss of their beloved idol.Real Madrid will be looking to capitalize on Barcelona's recent struggles and capitalize on any further slip-ups from their rivals as they aim to reclaim the La Liga title. Zinedine Zidane's side will be banking on their experience and quality to see them through the tough challenges that lie ahead in the remainder of the season.

Risk-tolerant investors hunting for growth often gravitate toward technology stocks -- and for good reason. These companies are driving some of the world's top social, economic, and cultural changes, after all. That's why so many of these tickers experience great gains (and a select few see outright massive ones). Indeed, the right tech stock can make you a millionaire with just a relatively small investment. Is SoundHound AI ( SOUN -1.16% ) such a millionaire-making name? Maybe. The stock's 300% price spike since late October certainly suggests at least some investors see big things in its foreseeable future. Before you take the same plunge in anticipation of becoming a millionaire within the next 10 years, however, there are a few things you'll want to consider. SoundHound's (very) cool interactive voice technology SoundHound is an artificial intelligence (AI) technology company. Its specialty is voice-based solutions, like turning a spoken drive-thru order into a written prep list for the fast-food restaurant staff, or hands-free activation (or deactivation) of an automobile's features. By leveraging the full potential of modern large language model (or LLM) AI, it can even support assistance-minded conversations with users of its tech. And customers are paying for access to its solutions. Restaurant management software provider Toast has integrated SoundHound's voice ordering technology into its offerings, while hamburger chain White Castle has directly secured access to it as a means of streamlining its drive-thrus. Carmaker Stellantis -- parent to Jeep, Dodge, Chrysler, Fiat, and others -- has utilized SoundHound's in-car solutions in some of its more driver-interactive vehicles. Streaming music platform Pandora (owned by SiriusXM ) can now be managed by subscribers' voices thanks to SoundHound AI. All told, this company monetized its technology to the tune of $25 million during the quarter ending in September, up 89% year over year. There's more growth on the horizon, too. Market research outfit Straits Research believes the global speech recognition industry is poised to grow at an annualized pace of 17% through 2032, jibing with outlooks from Technavio as well as Polaris Market Research. This business being its sole focus, SoundHound AI is seemingly well-positioned to capture at least its fair share of this growth. This possibility is the top reason at least a small handful of investors are piling in, perhaps in anticipation of riding the stock's coattails to reach the millionaire mark in the relatively near future. If you're thinking of doing the same, though, know that there's a fairly low likelihood of this stock actually making you a millionaire by 2035 no matter how much capital you commit to it today. In fact, there's arguably more risk than reward. Overvalued for any time frame There's no denying this company has significantly raised the bar on the voice-based artificial intelligence front. It's successfully monetizing its technology, too. Indeed, as Wedbush Securities analyst Daniel Ives recently noted, "SoundHound represents an underappreciated pure-play AI company" that's likely to report accelerated growth and new market prospects over the course of 2025. There are legitimate concerns about its longer-term growth prospects, however. Chief among them is the fact that, while impressive, there's nothing particularly unique about its technology . Take OpenAI's ChatGPT and Alphabet Google's Gemini as examples. Both are capable of offering text-based AI-generated conversations, and Google has already developed a serviceable speech-to-text tool for some of its offerings. Microsoft 's AI assistant, Copilot, can also be voice-based. Tweaking any of these solutions into a tool that's akin to SoundHound AI's wouldn't be a great leap. It's just that these companies have thus far opted not to. Microsoft, Google, and ChatGPT owner OpenAI all certainly enjoy access to deeper developmental pockets though. If and when any of them attempt to step onto SoundHound's turf, they could easily topple the smaller outfit. This fragility makes the second concern surrounding this stock all the more troubling. That's the stock's valuation. SoundHound AI shares are incredibly expensive. Never even mind the company's current lack of profits. It's obviously difficult to value any company operating in the red. You own a stock based on where the organization is going rather than where it is, but the future isn't always clear. Investors simply believe SoundHound will be fiscally viable at some point in time even with no real clarity as to when that might be. And maybe it will eventually swing to a profit. Even by the most forgiving valuation standards, though, at roughly 100 times its trailing-12-month revenue, this stock's still wildly expensive. For the sake of comparison, the S&P 500 's current price-to-sales ratio is in the ballpark of 3.1. Said in more practical terms, SoundHound AI's top line could grow more than 30-fold from here and shares would still be priced in line with its peers where it stands right now. The stock's really not any more promising in the near term, either. Analysts' current consensus price target of $14.36 is 40% below SoundHound shares' present price. Sure, target prices can and do rise over time. It could be a long time before the analyst community's consensus catches up with the stock's current level, however, if it ever does. The company continues to issue new stock to raise funds in the meantime, diluting existing shareholders. It's not clear when this practice is set to slow down. Not enough reward to justify the risk, but... Never say never. SoundHound could make you a millionaire by 2035. It might acquire or develop a new marketable tech with a wider defensive moat than its voice-based AI currently has, for instance. From an odds-making perspective though, that's a very low-likelihood prospect. There are just too many short-term headwinds already blowing, and too many long-term headwinds waiting in the wings. Don't sweat it too much if you're looking for millionaire-making stocks, however. They're out there. It's just that SoundHound AI isn't one of them. Check out these tickers if you can stomach the risk required of promising millionaire-making prospects.

Zeta Global Holdings Corp. Shareholder Notice: Robbins LLP Reminds Investors of the ZETA Class Action LawsuitJuan Soto could decide on his next team before or during baseball's winter meetings

NYC businesses might skip congestion pricing, move to New Jersey, senator says | The Point with Marcia KramerIn conclusion, while Antonio Conte's focus on his starting XI has brought success to Montolivo, it is crucial for him to recognize the importance of trusting and giving playing time to substitute players. By building a cohesive and united squad that includes all members, Conte can maximize the team's potential and create a winning mentality that extends beyond the first-choice lineup. In the ever-evolving world of football, adaptability and flexibility are key, and by embracing the talents of his substitute players, Conte can elevate Montolivo to new heights of success.Overall, the new regulations on pharmaceutical centralized procurement represent a positive step towards creating a more competitive and diverse market while ensuring that patients receive high-quality and effective medications. By optimizing evaluation methods and avoiding a one-size-fits-all approach, the regulations are set to benefit both pharmaceutical companies and healthcare institutions, leading to improved access to healthcare products and services for the public.

California could offer rebates for electric vehicle purchases if the incoming Trump administration eliminates a federal tax credit for people who buy electric cars, Governor Gavin Newsom said Monday. Newsom, a Democrat, proposed creating a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023 after funding 594,000 cars and saving 456 million gallons of fuel, Newsom’s office said. “Consumers continue to prove the skeptics wrong — zero-emission vehicles are here to stay," Newsom said in a statement. "We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.” Newsom’s proposal is part of his plan to protect California's progressive policies ahead of Republican President-elect Donald Trump's second term. He called the state Legislature to convene in a special session to help “Trump-proof” state laws by giving the attorney general’s office more funding to fight federal challenges. But a budget shortfall could complicate California’s resistance efforts. Early budget projections show the state could face a $2 billion deficit next year, according to a report released last week by the nonpartisan Legislative Analyst’s Office. That’s an improvement from an estimated $46.8 billion deficit the state faced last year, but the shortfall could still curtail the state’s ability to expand new programs and fight federal legal challenges. Legislative leaders in both chambers have said the state needs to stay prudent in anticipation of future budget deficits. Karoline Leavitt, a spokeswoman for Trump's transition team, said the president-elect would deliver on his campaign promises, “including stopping attacks on gas-powered cars.” “When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles,” she said in a statement. Money for the new rebate system could come from the state's Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program, the governor's office said. Officials didn’t say how much the program would cost or how the rebates would work. California has surpassed 2 million zero-emission vehicles sold, according to Newsom's office. The state has passed policies in recent years to transition away from fossil fuel-powered, cars, trucks, trains and lawn mowers. Trump previously vowed to end federal electric vehicle tax credits, which are worth up to $7,500 for new zero-emission vehicles. There’s also a $4,000 credit for used ones. But Trump later softened his stance as Tesla CEO Elon Musk became a supporter and adviser. Newsom's proposed rebates could exclude Tesla and other automakers in an effort to promote more market competition and innovation, according to the governor's office. But that is subject to negotiation with the state Legislature. Musk called Tesla's possible exclusion “insane” in a post on X. About 42% of rebates went to people buying or leasing Tesla vehicles under the state's previous clean vehicle rebate program, according to data from the California Air Resources Board. Trump criticized Newsom on social media after the governor called for a special session, calling out the high cost of living in California and the state’s homelessness crisis. Trump said Newsom was “stopping all of the GREAT things that can be done to ‘Make California Great Again.’” Newsom said on his podcast earlier this month that he reached out to Trump after the election. He said at a news conference last week that he still hadn’t heard back from the president-elect. California's defunct Clean Vehicle Rebate Program offered rebates on electric cars as high as $2,500.

American Water Works Company, Inc. ( NYSE:AWK – Get Free Report ) has received an average recommendation of “Reduce” from the eight ratings firms that are presently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $142.29. Several equities research analysts recently commented on AWK shares. Mizuho lowered shares of American Water Works from an “outperform” rating to a “neutral” rating and boosted their price objective for the stock from $131.00 to $140.00 in a research report on Tuesday, October 15th. Bank of America reissued an “underperform” rating and set a $140.00 price target on shares of American Water Works in a research note on Friday, September 20th. UBS Group upgraded shares of American Water Works from a “neutral” rating to a “buy” rating and boosted their target price for the company from $151.00 to $155.00 in a report on Tuesday, November 19th. Wolfe Research upgraded American Water Works to a “hold” rating in a report on Wednesday, September 18th. Finally, Jefferies Financial Group began coverage on shares of American Water Works in a research report on Monday, October 7th. They set an “underperform” rating and a $124.00 price target for the company. Get Our Latest Stock Analysis on AWK American Water Works Stock Down 0.7 % American Water Works Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 4th. Investors of record on Friday, February 7th will be given a dividend of $0.765 per share. This represents a $3.06 annualized dividend and a dividend yield of 2.44%. The ex-dividend date is Friday, February 7th. American Water Works’s dividend payout ratio is currently 60.59%. Institutional Investors Weigh In On American Water Works A number of institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. increased its position in American Water Works by 0.6% in the third quarter. JPMorgan Chase & Co. now owns 969,016 shares of the utilities provider’s stock worth $141,709,000 after buying an additional 5,889 shares during the period. Principal Financial Group Inc. grew its position in American Water Works by 129.6% in the 3rd quarter. Principal Financial Group Inc. now owns 502,391 shares of the utilities provider’s stock worth $73,470,000 after purchasing an additional 283,579 shares during the last quarter. Oddo BHF Asset Management Sas acquired a new stake in shares of American Water Works in the third quarter valued at approximately $1,988,000. Franklin Resources Inc. raised its holdings in shares of American Water Works by 3.0% during the third quarter. Franklin Resources Inc. now owns 1,034,221 shares of the utilities provider’s stock valued at $145,170,000 after buying an additional 29,961 shares during the last quarter. Finally, Synovus Financial Corp acquired a new position in shares of American Water Works during the third quarter worth approximately $221,000. Institutional investors own 86.58% of the company’s stock. American Water Works Company Profile ( Get Free Report American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. Read More Receive News & Ratings for American Water Works Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Water Works and related companies with MarketBeat.com's FREE daily email newsletter .A SCOTS brewer is accused of fighting for Russia in the Ukraine war — five years after showing MPs how to pour pints at the House of Commons. Jay Fraser, 24, was paraded on Vladimir Putin’s propaganda channels despite his family’s opposition to him signing up. Advertisement 4 Jay Fraser, 24, from Dunblane is in Kremlin promo videos shared on social media Credit: Ben Stimson/e2w 4 The Scots mercenary formerly worked as a brewing apprentice for Tennent's Credit: East2West 4 The ex-brewer is believed to have received a “warm welcome” from Russian fighters Credit: East2West 4 Jay Fraser, right, pictured alongside John Nicolson, former SNP MP for Ochil and South Perthshire Credit: East2West In one video from the frontline he says: “I believe this is a war not only between Russia and Ukraine , but also a war between Eastern and Western civilisation.” According to the translation, he adds: “Eastern civilisation is the correct one. And, accordingly, I have decided to take a direct part on your side, so to speak, for values.” He claimed Britain was “extremely aggressive” to Russia . Fraser is not the first Scot to become a mercenary for Russia. Advertisement READ MORE ON THE SCOTTISH SUN CAMERA OBSCURED Glasgow bomb scare sparks fear over city's CCTV coverage and black spots COMPO BID Crime gang boss being sued after killing three pals in 127mph M8 crash Earlier this month we told how fellow Scot Ross McElvenny, 25, from Newton Mearns, Glasgow , lost an eye while fighting for Putin. Fraser, once an apprentice with Tennent’s in Dennistoun, Glasgow, is understood to have grown up in Dunblane, Stirlingshire. He uses the call-sign Celt and is believed to have received a “warm welcome” from Russian fighters. Yet in 2020 he was pictured happily alongside then Nats MP John Nicolson as the politician attempted to pour pints of Tennent’s lager. Advertisement Most read in The Scottish Sun Breaking HIT AND RUN Car 'deliberately' ploughs into fans outside Premier League stadium after match PHIL THE HEAT Latest on Philippe Clement's future at Rangers amid swirling sack rumours TRAGIC FIND Body found on Scots island in search for missing woman, 28, as family informed REST EASY Andy Murray flooded with messages as he shares heart-breaking family update The Nat wrote at the time: “It was great to welcome my constituent Jay Fraser to parliament earlier today — I was delighted to present him with an award for his work as a brewing apprentice.” Fraser also appeared in articles promoting a career in the brewing industry . Scottish Mercenary Under Investigation for Fighting with Russian Forces Now he is in Kremlin promo videos shared on social media channel Telegram. In one he is asked if he understood he was likely committing a crime back home by taking up arms for Russia. Advertisement He says: “I realise that, Yes, I realise there is no going back, but I never thought of starting a family in the West with all the new realities. “That’s why I burned all my bridges and came here.” However, in a later video he claims his real aim is to return home with a Russian bride and open his own brewery. He says: “Yeah, that’s the plan, to meet a nice Russian girl and marry her. They’re much better-looking here than in Scotland .” He explains to the Russians that he brewed “Scottish ale”, and was told this was “cool”. Advertisement Asked if his family could be put under pressure by UK authorities, he says: “I thought about it, but for me it is also important, and I hope that the game is worth it. Not all of my side of the family is on my side. And I’m sure they won’t come here, no matter how much pressure the state puts on them.” On their reaction, he explains: “They didn’t take it very well that I was leaving the peace of Scotland to go to war in Russia. “But they also saw my determination that I was final in my decision and that no words could change my mind, so they accepted it.” Advertisement Fraser said he speaks “a little” Russian after completing two nights on the frontline. He insists: “I’m very happy to be here. I’ve always been a man of books, more into theory. I’m glad to be directly involved. It’s new emotions — new sensations for me.” Asked what he felt fighting alongside Russians, he goes on: “I was very much welcomed. “I am very surprised by such a warm welcome, despite the fact that I am from a country that is extremely aggressive towards Russia. I am happy to have such a welcome.” Advertisement He claimed to have read works by 19th century Russian poet Mikhail Lermontov, who is said to have had Scots ancestry. Last night, Mr Nicolson, who lost his seat at the general election , said: “MPs meet, briefly, a wide range of people as part of their work. "I strongly support Ukraine in its battle for survival against Putin’s murderous thuggery.” Police Scotland said: “We are aware of this information and inquiries are ongoing.” Advertisement Mercenary McElvenny was outed by online propaganda channels when his military vehicle was shelled in the Donetsk region of Ukraine. He is understood to be in hospital in the southern Russian city of Rostov-on-Don. In 2015, he was pictured with employment minister Annabelle Ewing during a school work placement at the Scottish Government’s Glasgow HQ. McElvenny — call-sign Whisky — told The Scottish Sun on Sunday: “My story is simple. I came to support a cause I believe in and I have zero regrets. Advertisement “I have often been asked, ‘Do you regret coming here? Don’t you miss home?’ and the answer is, absolutely not.” Read more on the Scottish Sun REST EASY Andy Murray flooded with messages as he shares heart-breaking family update COUGH UP Motorhome park owner shuts after guests leave without paying using shock trick British citizens fighting for Putin face jail if they return to the UK. The Foreign Enlistment Act makes it illegal to join armies in countries who are in conflict with Britain — but it is more likely that anti-terror laws would be used. Mad Vlad last week warned he could target the UK in direct response to Ukraine’s use of British-made Storm Shadow missiles.

Ferencváros, one of the most successful clubs in Hungarian football history, will be hoping that Keita's arrival can bolster their squad and help them achieve their domestic and European ambitions. With his experience playing at the highest level in the Premier League and in European competitions, Keita will bring a wealth of knowledge and expertise to the team.After 125 years or so of being the most collectively Joe College nation on Earth, many Americans have turned sour on the idea that a higher education — or at least the four years we have traditionally set aside for young adults to get a bachelor’s degree — is key to an informed, successful life. Not me. But the varsity blues are otherwise rampant. Perhaps our culture had gone a little bit too all-in on the tradition, and this is just a course correction. I have noted before in this space that in my observations of car rear windshields in dozens of countries around the world, we are the only one that is positively bonkers in identifying the schools in which we, or our children, have matriculated, through decals and bumper stickers. The Citroens of Paris and the Jaguars of London are not adorned with signifiers bragging “Sorbonne” or “Oxford.” I don’t quite know if it’s simple humility or a lack of school spirit, but the fact is their license-plate holders do not announce, as does mine, “Go Bears!,” or the equivalent, to the driver behind them at the stop light. I do realize I was lucky in having been accepted into the University of California system during its golden age of taxpayer support. I got to study at the greatest public university in the world for a tuition that never varied from its annual $637.50 price tag from September 1973 through June 1977. That, the $200 monthly check my (sainted) mother sent me and the $15 a week I made for writing for the student newspaper covered everything: rent, books, meals, beer, whatnot. Undergraduate bliss. Or, if not always entirely that — there were inevitable heartbreaks, and the vague existential dread of adult life around the corner, in which you’d somehow have to make ends meet — four formative transitional years in between living under your parents’ roof and having to fend entirely on your own. If I was lucky, at least I knew that I was, and never took it for granted. I wasn’t smart enough to be a slacker. I never missed a single class, freshman through senior years. Of course, the information imparted wasn’t always at the hands of the professors. On a university campus, you have your beliefs challenged, or at least you ought to. For instance, as a perhaps naive believer in the essentially correct nature of American foreign policy, the Vietnam debacle aside, I had never for a minute as a high school student been exposed to any notion that Israel was anything but entirely righteous and correct in its dealings with its Arab neighbors. But walking through Sproul Plaza one day, with its ubiquitous “tablers” espousing various political causes, from Young Communists through Young Republicans, I stopped to read some pamphleteering giving the Palestinian side. You mean land was taken from families with an ancient claim to it without proper compensation? The world was more complicated than one had been led to believe. Related Articles Opinion Columnists | Matt Fleming: Some books I enjoyed reading in 2024 Opinion Columnists | Thomas Elias: Expect Newsom to start his much anticipated run for president Opinion Columnists | Wishing for Santa-like efficiency in the USA Opinion Columnists | Jon Coupal: Santa Jarvis’s naughty and nice list Opinion Columnists | California is battling the future to protect performers And now, as is only fitting, it’s time to play the role of old grouch. Students arrive on campus these days more set in their views, less open to conversion. You hang with the like-minded and issue trigger warnings to those who would challenge you. The Palestine-Israel situation is a sadly perfect example of that. And so, as someone who still spends a lot of time on college campuses, I was glad to read recently of efforts by college administrators to get young people to open up. In a story headlined “To Dial Down Campus Tensions, Colleges Teach the Art of Conversation,” New York Times reporter Anemona Hartocollis writes: “On a warm November day, a group of Columbia University professors set up ‘listening tables’ near the center of campus and hailed students rushing to class, inviting them to stop and talk.” They smartly bring pizza as an enticement, so some things never change. But it’s often the dire wolf of Gaza that still howls loudest at the tables. A woman in a kaffiyeh in one conversation talked about “this genocide.” “I wouldn’t call it a genocide,” said Scott Barry Kaufman, a psych prof moderating the group. “Do you hate me because I disagree with you?” “No, she did not hate him — ‘for that reason,’ she said,” Hartocollis reports. “Ouch,” Dr. Kaufman replied. Hey, at least they’re talking. Larry Wilson is on the Southern California News Group editorial board. lwilson@scng.com."Indiana Jones: The Ancient Ring" has captured the hearts of gamers worldwide with its thrilling gameplay, immersive story, and exciting adventures. The game, set in a mysterious ancient temple filled with traps and secrets, allows players to take on the role of the legendary adventurer Indiana Jones as he races against time to uncover the secrets of the ancient ring.

RIVERWOODS, Ill.--(BUSINESS WIRE)--Nov 25, 2024-- Discover Financial Services (NYSE: DFS) (the “Company”) today announced, as required under the New York Stock Exchange (the “NYSE”) Listed Company Manual, that it received a notice (the “NYSE Notice”) from the NYSE on November 19, 2024 that the Company is not in compliance with Section 802.01E of the NYSE Listed Company Manual as a result of its failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 with the U.S. Securities and Exchange Commission (the “SEC”) prior to November 18, 2024, the end of the extension period provided by Rule 12b-25 under the Securities Exchange Act of 1934, as amended. The NYSE Notice has no immediate effect on the listing of the Company’s common stock on the NYSE. On July 19, 2023, the Company disclosed that beginning around mid-2007, the Company incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier (the “card product misclassification”). Based on information available as of June 30, 2023, the Company recognized a liability of $365 million that was accounted for as the correction of an error. The Company determined that the revenue impact was not material to the consolidated financial statements of the Company for any of the impacted periods. While it was therefore determined that it was not necessary for the Company to restate any previously issued interim or annual financial statements, the cumulative misstatement was deemed material to the three and six months ended June 30, 2023 condensed consolidated financial statements, and therefore the Company determined that adjustment of the full $365 million only through 2023 earnings was not appropriate. Therefore, the $365 million liability (the “Initial Liability”) was recorded as of June 30, 2023 with offsetting adjustments to merchant discount and interchange revenue and retained earnings, along with consequential impacts to deferred tax accruals. Comparable corrections were made for all prior periods presented in the Company’s Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2023 and September 30, 2023 and subsequently in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. On February 19, 2024, Discover and Capital One Financial Corporation (“Capital One”) jointly announced that they entered into an agreement and plan of merger pursuant to which the companies will combine in an all-stock transaction (the “Merger”). In the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, the Company disclosed that it had determined to increase its liability to $1.2 billion (the “Liability Increase”) through a charge to other expense for the three months ended March 31, 2024, to reflect the total amount the Company then expected was probable to be disbursed in relation to the card product misclassification. The Company determined the Liability Increase was appropriate based on its experience through that date with remediation efforts, discussions through the first quarter of 2024 with its regulators, Board of Directors and other stakeholders, the pending Merger, which was approved by the Company’s Board of Directors during the quarter, and a desire to advance resolution of the matter more quickly to mitigate further risk. As part of the review of the Company’s historical financial statements by the Staff of the SEC (the “Staff”) undertaken in connection with the Staff’s review of the Registration Statement on Form S-4 filed by Capital One in connection with the Merger (and the preliminary joint proxy statement/prospectus contained therein) (the “Registration Statement”), the Staff provided comments to the Company relating to the Company’s accounting approach for the card product misclassification. The Company has responded to these comments and has engaged in several verbal discussions with the Staff. The Staff has indicated that it disagrees with the Company’s application of revenue recognition guidance issued by the Financial Accounting Standards Board in connection with the Company’s recording of the Initial Liability. The Staff has, however, indicated that it would not object to an approach whereby the Company determined the cumulative revenue error related to the card product misclassification to be the maximum amount agreed to be paid by the Company in restitution in respect of the card product misclassification (excluding interest and legal expenses) (the “Alternative Approach”). This amount is approximately $1,047 million. On November 25, 2024, the Audit Committee of the Board of Directors of the Company (the “Audit Committee”), acting on the recommendation of management, and after discussion with Deloitte & Touche LLP (“Deloitte”), the Company’s independent registered public accounting firm, concluded that (i) the Company’s audited financial statements as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2023 and (ii) the Company’s unaudited condensed consolidated financial statements included in the Company's Quarterly Reports on Form 10-Q previously filed with the SEC for the fiscal quarters ended March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 (collectively, the “Prior Periods”), should no longer be relied upon and should be restated to reflect the Alternative Approach. In addition, the Audit Committee concluded that management’s report on the effectiveness of internal control over financial reporting as of December 31, 2023 and Deloitte’s report on the consolidated financial statements as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 as well as Deloitte’s report on the effectiveness of internal control over financial reporting as of December 31, 2023, should no longer be relied upon. In order to implement the Alternative Approach in the Restated Financial Statements (as defined below), approximately $600 million of the Liability Increase will be reallocated from being recorded as other expense in the fiscal quarter ended March 31, 2024 to a revenue error correction in prior periods. In addition, $124 million of the Liability Increase representing interest that the Company committed to pay as part of its counterparty restitution plan will also be reallocated from the fiscal quarter ended March 31, 2024 to the third and fourth quarters of 2023. Cumulative historical earnings, capital and the aggregate amount of the counterparty restitution liability will not be affected by application of the Alternative Approach. However, separate work being done to validate the remediation methodology with a third-party consultant has resulted in the identification of approximately $60 million of incremental overcharges, which will be reflected in the Restated Financial Statements. As a result, the Company expects the Restated Financial Statements to reflect the following approximate impacts: as of December 31, 2023, (i) an increase in assets of $190 million, (ii) an increase in accrued expenses and other liabilities of $783 million, and (iii) a decrease in retained earnings of $593 million. For the years ended December 31, 2023 and 2022, pre-tax income would be reduced by approximately $190 million to $3,636 million and $77 million to $5,641 million, respectively. For the third quarter of 2024, pre-tax income would decrease by approximately $6 million to $1,282 million while pre-tax income for the nine months ended September 30, 2024 would increase by approximately $700 million to $4,462 million (as compared to the pre-tax income reported in the financial information with respect to the quarter ended September 30, 2024 in the exhibits furnished with the Company’s Current Report on Form 8-K filed with the SEC on October 16, 2024). Amendments to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K/A”), and the Company’s Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2024 and June 30, 2024 (the “Form 10-Q/As” and together with the Form 10-K/A, the “Restated Financial Statements”), are expected to be filed prior to or concurrently with the filing of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 in order to reflect the Alternative Approach and the other modifications described above to the Prior Periods. The Company is working expeditiously to file the Restated Financial Statements as soon as reasonably practicable. The Company currently expects to complete the filings prior to year-end, however there can be no assurance of the actual timing. The Company expects that Capital One will file a pre-effective amendment to the Registration Statement promptly following the Company’s filing of the Restated Financial Statements, and that as soon as practicable following the effectiveness of the Registration Statement and the mailing of the definitive joint proxy statement/prospectus contained therein to each company’s stockholders, each company will hold its respective special meeting of stockholders for purposes of obtaining the requisite stockholder approvals of the Merger. Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The Company issues the Discover® card, America's cash rewards pioneer, and offers personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit . This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which speak to our expected business and financial performance, among other matters, contain words such as "believe," "expect," "anticipate," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," "forecast," and similar expressions. Other forward-looking statements may include, without limitation, statements with respect to the restatement of the Company’s financial statements. Such statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. These forward-looking statements speak only as of the date of this communication and there is no undertaking to update or revise them as more information becomes available. Actual future events could also differ materially due to numerous factors that involve substantial known and unknown risks and uncertainties including, among other things, risks relating to the final impact of the restatements on the Company’s financial statements; the impact of the restatements on the Company’s evaluation of the effectiveness of its internal control over financial reporting and disclosure controls and procedures; delays in the preparation of the consolidated financial statements and/or the declaration of effectiveness of the Registration Statement; the risk that additional information will come to light that alters the scope or magnitude of the restatement; the risks and uncertainties set forth under “Risk Factors” and elsewhere in the Company’s reports on Form 10-K and Form 10-Q; and the other risks and uncertainties discussed in any subsequent reports that the Company files with the SEC from time to time. Although the Company has attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Given these uncertainties, investors are cautioned not to place undue reliance on forward-looking statements. Capital One has filed the Registration Statement with the SEC to register the shares of Capital One’s common stock that will be issued to the Company’s stockholders in connection with the Merger. The Registration Statement includes a preliminary joint proxy statement of Capital One and the Company that also constitutes a preliminary prospectus of Capital One. The definitive joint proxy statement/prospectus will be sent to the stockholders of each of the Company and Capital One in connection with the Merger. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC by the Company or Capital One through the website maintained by the SEC at or by contacting the investor relations department of the Company or Capital One at: Discover Financial Services Capital One Financial Corporation 2500 Lake Cook Road 1680 Capital One Drive Riverwoods, IL 60015 McLean, VA 22102 Attention: Investor Relations Attention: Investor Relations (224) 405-4555 (703) 720-1000 The Company, Capital One and certain of their directors and executive officers may be deemed participants in the solicitation of proxies from the stockholders of each of the Company and Capital One in connection with the Merger. Information regarding the directors and executive officers of the Company and Capital One and other persons who may be deemed participants in the solicitation of the stockholders of the Company or of Capital One in connection with the Merger will be included in the joint proxy statement/prospectus related to the Merger, which will be filed by Capital One with the SEC. Information about the directors and executive officers of the Company and their ownership of the Company common stock can also be found in the Company’s definitive proxy statement in connection with its 2024 annual meeting of stockholders, as filed with the SEC on March 15, 2024, as supplemented by the Company’s proxy statement supplement, as filed with the SEC on April 2, 2024, and other documents subsequently filed by the Company with the SEC. Information about the directors and executive officers of Capital One and their ownership of Capital One common stock can also be found in Capital One’s definitive proxy statement in connection with its 2024 annual meeting of stockholders, as filed with the SEC on March 20, 2024, and other documents subsequently filed by Capital One with the SEC. Additional information regarding the interests of such participants will be included in the joint proxy statement/prospectus and other relevant documents regarding the Merger filed with the SEC when they become available. View source version on : CONTACT: Investor Contact: Erin Stieber, 224-405-4555 Contact: Matthew Towson, 224-405-5649 KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE SOURCE: Discover Financial Services Copyright Business Wire 2024. PUB: 11/25/2024 06:06 PM/DISC: 11/25/2024 06:06 PM