- Report: #7710
Complaint Review: NextCard - Nationwide
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Author Confirmed
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NextCard
Nationwide, U.S.A.
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Shareholder Sues NextCard, Inc. for Securities Fraud, -This should make several thousand consumers happy. NextCard has been busted!
Shareholder Sues NextCard, Inc. for Securities Fraud,Berman DeValerio Pease Tabacco Burt & Pucillo Announces
Copyright 2001 PR Newswire Association, Inc.
PR Newswire...11/06/2001
A shareholder sued NextCard, Inc. (Nasdaq: NXCD) today infederal court, claiming that the credit card company misled investors aboutbeing well capitalized, the law firm of Berman DeValerio Pease Tabacco Burt& Pucillo said.
The class action was filed in the U.S. District Court for the NorthernDistrict of California and seeks damages for violations of federal securitieslaws on behalf of all investors who bought NextCard stock between March 30,2000 and October 30, 2001 (the Class Period).
Berman DeValerio has represented investors in class actions for nearly twodecades. To review the complaint and learn more about becoming a leadplaintiff, visit our Website at http://www.bermanesq.com.
The complaint says that NextCard and several top officers disseminated falseand misleading information about its capitalization in its filings with theSecurities and Exchange Commission for the 1999 and 2000 fiscal years and forpart of 2001. The misleading statements concerned the company's wholly ownedsubsidiary, NextBank, and its classification under federal banking guidelines.Though the company repeatedly described NextBank in SEC filings as "well capitalized" during the Class Period, it was in fact "significantly under capitalized."
NextCard maintained this false, well capitalized status by improperly classifying credit losses as fraud losses.
In the third quarter of 2001, federal regulators put an abrupt halt to thesemisleading practices, forcing the company to reclassify its fraud losses ascredit losses and to increase its allowances for loan losses. Once the creditlosses were properly categorized, NextBank became significantly under capitalized" -- a full $ 140 million below the level required for "well capitalized" status.
On October 31, 2001, NextCard revealed that it was unableto provide the needed capital to NextBank and could no longer operate on itsown. Stunned investors watched as the company's stock plummeted from a closingprice of $ 5.35 per share on October 30 to a closing price of $ 0.87 the nextday.
The complaint also alleges that one of the individual defendants, NextCardco-founder Jeremy R. Lent, sold $ 7.5 million worth of stock in illegal insidertrades, along with an additional $ 8.2 million in indirect stock held by theLent Family Trust.
If you purchased NextCard, Inc. common stock during the period March 30,2000 through October 30, 2001, you may wish to contact the following attorneysat Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Alicia Duff, Esq.
Jeffrey C. Block, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
[email protected]
You may also visit us at our website at http://www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must befiled on your behalf with the court no later than December 31, 2001. You maycontact the attorneys at Berman DeValerio to discuss your rights regarding theappointment of lead plaintiff and your interest in the class action. To be amember of the class, however, you need not take any action at this time, and you may retain counsel of your own choice. If you decide to seek appointment aslead plaintiff, you may also retain counsel of your choice.
Copyright 2001 PR Newswire Association, Inc.
PR Newswire...11/06/2001
A shareholder sued NextCard, Inc. (Nasdaq: NXCD) today infederal court, claiming that the credit card company misled investors aboutbeing well capitalized, the law firm of Berman DeValerio Pease Tabacco Burt& Pucillo said.
The class action was filed in the U.S. District Court for the NorthernDistrict of California and seeks damages for violations of federal securitieslaws on behalf of all investors who bought NextCard stock between March 30,2000 and October 30, 2001 (the Class Period).
Berman DeValerio has represented investors in class actions for nearly twodecades. To review the complaint and learn more about becoming a leadplaintiff, visit our Website at http://www.bermanesq.com.
The complaint says that NextCard and several top officers disseminated falseand misleading information about its capitalization in its filings with theSecurities and Exchange Commission for the 1999 and 2000 fiscal years and forpart of 2001. The misleading statements concerned the company's wholly ownedsubsidiary, NextBank, and its classification under federal banking guidelines.Though the company repeatedly described NextBank in SEC filings as "well capitalized" during the Class Period, it was in fact "significantly under capitalized."
NextCard maintained this false, well capitalized status by improperly classifying credit losses as fraud losses.
In the third quarter of 2001, federal regulators put an abrupt halt to thesemisleading practices, forcing the company to reclassify its fraud losses ascredit losses and to increase its allowances for loan losses. Once the creditlosses were properly categorized, NextBank became significantly under capitalized" -- a full $ 140 million below the level required for "well capitalized" status.
On October 31, 2001, NextCard revealed that it was unableto provide the needed capital to NextBank and could no longer operate on itsown. Stunned investors watched as the company's stock plummeted from a closingprice of $ 5.35 per share on October 30 to a closing price of $ 0.87 the nextday.
The complaint also alleges that one of the individual defendants, NextCardco-founder Jeremy R. Lent, sold $ 7.5 million worth of stock in illegal insidertrades, along with an additional $ 8.2 million in indirect stock held by theLent Family Trust.
If you purchased NextCard, Inc. common stock during the period March 30,2000 through October 30, 2001, you may wish to contact the following attorneysat Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Alicia Duff, Esq.
Jeffrey C. Block, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
[email protected]
You may also visit us at our website at http://www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must befiled on your behalf with the court no later than December 31, 2001. You maycontact the attorneys at Berman DeValerio to discuss your rights regarding theappointment of lead plaintiff and your interest in the class action. To be amember of the class, however, you need not take any action at this time, and you may retain counsel of your own choice. If you decide to seek appointment aslead plaintiff, you may also retain counsel of your choice.
2 Updates & Rebuttals
Can you say "credit card
#20
Fri, November 16, 2001
They filed the following rebuttal to the above Rip-Off Report: Their email: [email protected] Their name: Adolph Their relationship to the company: Consumer Suggestion Rebuttal: Can you say "credit card MLM / network marketing"? I had never heard of "Next Card" so curiosity led me to their web site. I then found this "increase your income" ploy. Somehow, after reading the complaints here on the BadBB site in reference to their heavy-handed actions, I think I could find a better way to "increase my income", eh?
#30
Tue, November 13, 2001
