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| 2002 News and Press Releases |
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SETTLEMENT ARCHIVED:
Proposed Settlement Of Providian Lawsuit To Cost $38 Million
By: Shannon P. Duffy
The Legal Intelligencer. March 21, 2002, Thursday
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Excerpt: Providian Financial Corp. has agreed to pay $38 million to settle a class action securities fraud suit that accused the credit card company of inflating its profits with illegal charges to consumers that it was later forced to pay back in a $300 million settlement of a consumer class action. In a brief filed yesterday, plaintiffs' lawyers asked U.S. District Judge William H. Yohn Jr. to grant preliminary approval of the settlement and schedule a fairness hearing. Attorneys Lester Levy, Robert C. Finkel and Kent A. Bronson of Wolf Popper, along with Andrew J. Entwistle and Catherine Torrell of Entwistle & Capucci, both New York firms, argue that the $38 million settlement is an "excellent result" in a securities case where there was no restatement of financial statements, no investigation by the SEC and no insider trading. And considering Providian's "deteriorated" financial condition, they argue that the settlement is "truly remarkable" since the company's only source of funds is $57 million in remaining director-and-officer insurance and investors will be getting about two-thirds of that.
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