Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_01-cv-21029/USCOURTS-cand-5_01-cv-21029-13/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

In re NEXTCARD, INC. SECURITIES 

LITIGATION 

This Document Relates To: 

ALL ACTIONS. 

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Master File No. C-01-21029-JF(PVT) 

CLASS ACTION

STIPULATION AND [PROPOSED] ORDER 

PRELIMINARILY APPROVING 

SETTLEMENT WITH JEREMY LENT AND 

PROVIDING FOR NOTICE 

**E-filed 4/27/07** ---------------

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WHEREAS, a consolidated class action is pending before the Court entitled In re NextCard, 

Inc. Securities Litigation, Master File No. C-01-21029-JF(PVT) (the “Litigation”); 

WHEREAS, the Settling Parties submit herewith the Stipulation of Settlement with Jeremy 

Lent dated as of April 18, 2007 (the “Stipulation”), that has been entered into by the Lead Plaintiffs 

and Lent; 

THEREFORE, the Settling Parties, by and through their counsel, hereby stipulate as follows: 

1. All defined terms contained herein shall have the same meanings as set forth in the 

Stipulation. 

2. Pursuant to Federal Rule of Civil Procedure 23(e), the Settling Parties jointly request 

the Court to enter this order preliminarily approving the settlement of this Litigation, in accordance 

with the Stipulation which, together with the Exhibits annexed thereto sets forth the terms and 

conditions for a proposed settlement of the Litigation and for dismissal of the Litigation against Lent 

with prejudice upon the terms and conditions set forth therein. 

3. The Settling Parties further jointly request that the Court find that the proposed notice 

procedures and the schedule of events set forth herein meet the requirements of Federal Rule of Civil 

Procedure 23 and due process. 

 IT IS SO STIPULATED. 

DATED: April 25, 2007 LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

JEFFREY W. LAWRENCE 

CHRISTOPHER P. SEEFER 

BING Z. RYAN 

100 Pine Street, Suite 2600 

San Francisco, CA 94111 

Telephone: 415/288-4545 

415/288-4534 (fax) 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

WILLIAM S. LERACH 

JOY ANN BULL 

s/ Joy Ann Bull 

JOY ANN BULL 

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655 West Broadway, Suite 1900 

San Diego, CA 92101 

Telephone: 619/231-1058 

619/231-7423 (fax) 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

TAMARA J. DRISCOLL (pro hac vice) 

1700 Seventh Avenue, Suite 2260 

Seattle, WA 98101 

Telephone: 206-749-5544 

206-749-9978 (fax) 

BERNSTEIN LITOWITZ BERGER & 

 GROSSMANN LLP 

DAVID R. STICKNEY 

NIKI L. MENDOZA 

RUSSELL F.A. RIVIERE 

12481 High Bluff Drive, Suite 300 

San Diego, CA 92130 

Telephone: 858/793-0070 

858/793-0323 (fax) 

Co-Lead Counsel for Lead Plaintiffs and the 

Class 

I, Joy Ann Bull, am the ECF User whose ID and password are being used to file this 

Stipulation and [Proposed] Order Preliminarily Approving Settlement with Jeremy Lent and 

Providing for Notice. In compliance with General Order 45, X.B., I hereby attest Shirli Fabbri 

Weiss has concurred in this filing. 

DATED: April 25, 2007 DLA PIPER US LLP 

SHIRLI FABBRI WEISS 

s/ Shirli Fabbri Weiss 

SHIRLI FABBRI WEISS 

401 B Street, Suite 1700 

San Diego, CA 92101-4297 

Telephone: 619/699-3650 

619/669-2701 (fax) 

Attorneys for Defendant Jeremy Lent 

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* * * 

O R D E R 

NOW, THEREFORE, IT IS HEREBY ORDERED: 

1. The Court does hereby preliminarily approve the Stipulation and the settlement set 

forth therein, subject to further consideration at the Settlement Hearing described below. 

2. A hearing (the “Settlement Hearing”) shall be held before this Court on July 20, 2007, 

at 9:00 a.m., at the United States Courthouse, 280 South First Street, San Jose, California, to 

determine whether the proposed settlement of the Litigation with Lent on the terms and conditions 

provided for in the Stipulation is fair, reasonable and adequate to the Settlement Class and should be 

approved by the Court; whether a Judgment as defined in ¶1.9 of the Stipulation should be entered 

herein; and to determine the amount of fees and expenses that should be awarded to Co-Lead 

Counsel. The Court may adjourn the Settlement Hearing without further notice to Members of the 

Settlement Class. 

3. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, the Court preliminarily 

certified on October 3, 2005, for purposes of effectuating a settlement with Ernst & Young LLP 

(“E&Y), a Settlement Class of all Persons who purchased NextCard securities during the period 

between April 19, 2000 and October 30, 2001, and who were damaged thereby. Excluded from the 

Settlement Class are Lent, the Remaining Defendants, NextCard, E&Y, members of the immediate 

families of Lent or the Remaining Defendants, any entity in which Lent, the Remaining Defendants, 

NextCard or E&Y has or had a controlling interest, current or former directors and officers of 

NextCard or E&Y, and the legal representatives, heirs, successors, or assigns of any such excluded 

person or entity. Also excluded from the Settlement Class are those Persons who timely and validly 

requested exclusion from the Settlement Class pursuant to the Notice of Pendency and Proposed 

Partial Settlement of Class Action sent to Settlement Class Members on October 5, 2005. 

4. The Court previously certified the Settlement Class, set forth in ¶3 above. Pursuant to 

an order of the Court dated October 3, 2005, a Notice of Pendency and Proposed Partial Settlement 

of Class Action dated October 3, 2005 was sent to Settlement Class Members beginning on October 

5, 2005, advising them of their right to request exclusion from the Settlement Class. The Court finds 

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that the Notice of Pendency and Proposed Partial Settlement of Class Action complied fully with the 

requirements of Rule 23 of the Federal Rules of Civil Procedure and due process, and thus, it is not 

necessary to afford Settlement Class Members another opportunity to request exclusion from the 

Settlement Class pursuant to Rule 23(e)(3). 

5. The Court approves, as to form and content, the Notice of Proposed Settlement of 

Class Action with Jeremy Lent (“Notice”), the Proof of Claim and Release form (the “Proof of 

Claim”), and Summary Notice for publication annexed as Exhibits A-1, A-2 and A-3 hereto, and 

finds that the mailing and distribution of the Notice and publishing of the Summary Notice 

substantially in the manner and form set forth in ¶¶6-7 of this Order meet the requirements of 

Federal Rule of Civil Procedure 23 and due process, and is the best notice practicable under the 

circumstances and shall constitute due and sufficient notice to all Persons entitled thereto. 

6. Co-Lead Counsel were previously authorized to retain the firm of RG/2 Claims 

Administration LLC (“Claims Administrator”) to supervise and administer the notice procedure as 

well as the processing of claims. The notice procedure will be as set forth below: 

(a) Not later than May 22, 2007 (the “Notice Date”), Co-Lead Counsel shall 

cause a copy of the Notice and the Proof of Claim, substantially in the form annexed as Exhibits A-1 

and A-2, to be mailed by first class mail to all Settlement Class Members who can be identified with 

reasonable effort; 

(b) Not later than May 22, 2007, Co-Lead Counsel shall cause the Summary 

Notice to be published once in Investor’s Business Daily; and 

(c) At least seven (7) calendar days prior to the Settlement Hearing, Co-Lead 

Counsel shall cause to be served on Lent’s counsel and filed with the Court proof, by affidavit or 

declaration, of such mailing and publishing. 

7. Nominees who purchased NextCard securities during the period beginning April 19, 

2000 through October 30, 2001, inclusive, shall send the Notice and the Proof of Claim to all 

beneficial owners of such NextCard securities within ten (10) days after receipt thereof, or send a list 

of the names and addresses of such beneficial owners to the Claims Administrator within ten (10) 

days of receipt thereof, in which event the Claims Administrator shall promptly mail the Notice and 

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Proof of Claim to such beneficial owners. Co-Lead Counsel shall, if requested, reimburse banks, 

brokerage houses or other nominees solely for their reasonable out-of-pocket expenses incurred in 

providing notice to beneficial owners who are Settlement Class Members out of the Class Notice 

and Administration Fund, which expenses would not have been incurred except for the sending of 

such Notice, subject to further order of this Court with respect to any dispute concerning such 

compensation. 

8. All Members of the Settlement Class shall be bound by all determinations and 

judgments in the Litigation concerning the settlement, whether favorable or unfavorable to the 

Settlement Class. 

9. Unless they have already done so, Settlement Class Members who wish to participate 

in the settlement shall complete and submit Proof of Claim forms in accordance with the instructions 

contained therein. Unless the Court orders otherwise, all Proof of Claim forms must be submitted no 

later than ninety (90) days from the Notice Date. Any Settlement Class Member who has not 

already submitted a Proof of Claim in connection with the earlier settlement with E&Y, and who 

does not timely submit a Proof of Claim within the time provided for, shall be barred from sharing in 

the distribution of the proceeds of the Settlement Fund, unless otherwise ordered by the Court. 

10. Any Member of the Settlement Class may enter an appearance in the Litigation, at 

their own expense, individually or through counsel of their own choice. If they do not enter an 

appearance, they will be represented by Co-Lead Counsel. 

11. Any Member of the Settlement Class may appear and show cause, if he, she or it has 

any reason, why the proposed settlement of the Litigation should or should not be approved as fair, 

reasonable and adequate, why a judgment should or should not be entered thereon, or why attorneys’ 

fees and expenses should or should not be awarded to Co-Lead Counsel; provided, however, that no 

Settlement Class Member or any other Person shall be heard or entitled to contest the approval of the 

terms and conditions of the proposed settlement, or, if approved, the Judgment to be entered thereon 

approving the same, or the attorneys’ fees and expenses to be awarded to Co-Lead Counsel, unless 

that Person has delivered by hand or sent by first class mail written objections and copies of any 

papers and briefs such that they are received on or before July 6, 2007, by: Lerach Coughlin Stoia 

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Geller Rudman & Robbins LLP, Joy Ann Bull, 655 W. Broadway, Suite 1900, San Diego, California 

92101; and DLA Piper US LLP, Shirli Fabbri Weiss, 401 B Street, Suite 1700, San Diego, 

California 92101, and filed said objections, papers and briefs with the Clerk of the United States 

District Court for the Northern District of California, San Jose Division, on or before July 6, 2007. 

Any Member of the Settlement Class who does not make his, her or its objection in the manner 

provided shall be deemed to have waived such objection and shall forever be foreclosed from 

making any objection to the fairness or adequacy of the proposed settlement as set forth in the 

Stipulation, or to the award of attorneys’ fees and expenses to Co-Lead Counsel, unless otherwise 

ordered by the Court. 

12. All funds held by the Escrow Agent shall be deemed and considered to be in custodia 

legis of the Court, and shall remain subject to the jurisdiction of the Court, until such time as such 

funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court. 

13. All papers in support of the settlement and any application by Co-Lead Counsel for 

attorneys’ fees or reimbursement of expenses shall be filed and served seven (7) calendar days prior 

to the Settlement Hearing. 

14. Neither Lent nor his Related Parties shall have any responsibility for or liability with 

respect to any application for attorneys’ fees or reimbursement of expenses submitted by Co-Lead 

Counsel, and such matters will be considered separately from the fairness, reasonableness and 

adequacy of the settlement. 

15. At or after the Settlement Hearing, the Court shall determine whether any application 

for attorneys’ fees or reimbursement of expenses shall be approved. 

16. All reasonable expenses incurred in identifying and notifying Settlement Class 

Members, as well as administering the Settlement Fund, shall be paid as set forth in the Stipulation. 

In the event the settlement is not approved by the Court, or otherwise fails to become effective, 

neither the Lead Plaintiffs nor Co-Lead Counsel shall have any obligation to repay any amounts 

actually and properly disbursed or due and owing from the Class Notice and Administration Fund. 

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17. Neither the Stipulation, nor any of its terms or provisions, nor any of the negotiations 

or proceedings connected with it, shall be construed as an admission or concession by Lent of the 

truth of any of the allegations in the Litigation, or of any liability, fault, or wrongdoing of any kind. 

18. The Court reserves the right to adjourn the date of the Settlement Hearing without 

further notice to the Members of the Settlement Class, and retains jurisdiction to consider all further 

applications arising out of or connected with the proposed settlement. The Court may approve the 

settlement, with such modifications as may be agreed to by the Settling Parties, if appropriate, 

without further notice to the Settlement Class. 

DATED: __________________ _______________________________________________ 

THE HONORABLE JEREMY FOGEL 

UNITED STATES DISTRICT JUDGE 

S:\Settlement\NextCard.set\(v1) EA (LENT) 00039909.doc 

4/26/07

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