Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_01-cv-21029/USCOURTS-cand-5_01-cv-21029-6/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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LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

JEFFREY W. LAWRENCE (166806) 

CHRISTOPHER P. SEEFER (201197) 

100 Pine Street, Suite 2600 

San Francisco, CA 94111 

Telephone: 415/288-4545 

415/288-4534 (fax) 

jeffreyl@lerachlaw.com 

chriss@lerachlaw.com 

– and – 

WILLIAM S. LERACH (68581) 

655 West Broadway, Suite 1900 

San Diego, CA 92101 

Telephone: 619/231-1058 

619/231-7423 (fax) 

billl@lerachlaw.com 

– and – 

TAMARA J. DRISCOLL (pro hac vice) 

1700 Seventh Avenue, Suite 2260 

Seattle, WA 98101 

Telephone: 206-749-5544 

206-749-9978 (fax) 

tamarad@lerachlaw.com 

BERNSTEIN LITOWITZ BERGER & 

 GROSSMANN LLP 

ALAN SCHULMAN (128661) 

ROBERT S. GANS (214420) 

NIKI L. MENDOZA (214646) 

12481 High Bluff Drive, Suite 300 

San Diego, CA 92130 

Telephone: 858/793-0070 

858/793-0323 (fax) 

alans@blbglaw.com 

robert @blbglaw.com 

nikim@blbglaw.com

Co-Lead Counsel for Lead Plaintiffs and the Class 

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(EI) 

CLASS ACTION

JOINT CASE MANAGEMENT 

STATEMENT AND [PROPOSED] ORDER 

DATE: May 26, 2006 

TIME: 10:30 a.m. 

COURTROOM: The Honorable 

 Jeremy Fogel 

**E-filed 5/23/06**

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 1 of 11
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The parties to the above-entitled action jointly submit this Joint Case Management Statement 

and [Proposed] Order and request the Court adopt it as the Case Management Order in this case. 

The parties met and conferred on April 5, 2006, as required by Fed. R. Civ. P. 16 and 26(f), and N.D. 

Cal. Civil Local Rules 16-9 and 16-10(d). 

DESCRIPTION OF THE CASE

1. A Brief Description of the Events Underlying the Action 

This is a shareholder class action brought on behalf of all persons and entities who purchased 

NextCard, Inc. (“NextCard” or the “Company”) common stock between April 19, 2000 and October 

31, 2001 (the “Class Period”), and who were allegedly damaged thereby. The action arises from 

NextCard’s alleged misstatements of its financial results and condition during the Class Period. The 

claims against NextCard’s officers and directors arise under §10(b) of the Securities Exchange Act 

of 1934 (“Exchange Act”) and Rule 10b-5(a)-(c) promulgated thereunder. The claims against 

NextCard’s officers and directors also arise under §20(a) of the Exchange Act. 

Plaintiffs allege the following: NextCard was an Internet-based provider of consumer credit, 

and operated through its wholly-owned banking subsidiary, NextBank. On November 14, 2002, 

NextCard filed for Chapter 11 bankruptcy, which was subsequently converted to a Chapter 7 

proceeding. NextCard is not named as a defendant in this action by virtue of its bankruptcy filing. 

Defendants in this action are John V. Hashman (“Hashman”), the Company’s former Chief Financial 

Officer and President, Yinzi Cai (“Cai”), NextCard’s former Senior Vice President, Jeremy R. Lent 

(“Lent”), NextCard’s former Chairman and Chief Executive Officer, and Bruce G. Rigione 

(“Rigione”), NextCard’s former director, Senior Vice President and Chief Financial Officer. This 

Court appointed the Jacksonville Police & Fire Pension Fund and M. Richard Andrews as co-lead 

plaintiffs over this action. 

On February 7, 2005, this Court granted defendants’ motions to dismiss the Consolidated 

First Amended Class Action Complaint for Violations of the Federal Securities Laws with leave to 

amend. Lead plaintiffs filed the Consolidated Second Amended Class Action Complaint for 

Violations of the Federal Securities Laws (“SAC”) on April 27, 2005. Defendants filed motions to 

dismiss the SAC, to which lead plaintiffs opposed. The hearing on defendants’ motions to dismiss 

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 2 of 11
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the SAC was held on October 28, 2005. On March 20, 2006, this Court denied the motions to 

dismiss filed by defendants Hashman, Lent, Cai and Rigione, and granted the motion to dismiss filed 

by NextCard’s former director, defendant Safi U. Qureshey. 

On October 30, 2003, lead plaintiffs filed their Complaint for Violations of the Federal 

Securities Laws against NextCard’s auditor Ernst & Young LLP (“E&Y”) for violations of §10(b) of 

the Exchange Act and Rule 10b-5(a)-(c) promulgated thereunder, arising out of the allegedly false 

and misleading statements contained in NextCard’s quarterly Reports on Form 10-Qs filed in 2000 

and the first half of 2001 as well as NextCard’s annual Report on Form 10-K for the fiscal year 

2000. Following a December 2, 2005 hearing, this Court granted final approval of a $23.2 million 

settlement between the Settlement Class and E&Y. 

2. The Principal Factual Issues Which the Parties Dispute 

(a) Did NextCard and each defendant participate in a scheme to defraud or issue 

materially false and misleading statements? 

(b) Was the market price of NextCard’s common stock artificially inflated? 

(c) Did each defendant act with scienter? 

(d) Did each defendant’s actions cause damage to lead plaintiffs and the members 

of the Class? 

(e) What is the proper measure of damages, if any? 

3. The Principal Legal Issues Which the Parties Dispute 

(a) Did each defendant violate §10(b) of the Exchange Act and Rule 10b-5(a)-(c) 

promulgated thereunder? 

(b) Is each defendant liable under §20(a) of the Exchange Act? 

4. The Other Factual Issues Which Remain Unresolved for the Reasons Stated 

 Below and How the Parties Propose to Resolve Those Issues 

All material facts are currently in dispute and will be resolved through trial. 

5. The Parties Which Have Not Been Served and the Reasons 

All defendants have been served. 

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 3 of 11
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6. The Additional Parties Which the Below-Specified Parties Intend to Join and the 

 Intended Time Frame for Such Joinder 

The parties do not anticipate joining any additional parties at this time, but reserve the right 

to join additional parties as discovery proceeds in accordance with the Federal Rules of Civil 

Procedure and the Civil Local Rules of this Court. 

ALTERNATIVE DISPUTE RESOLUTION

The parties engaged in an unsuccessful mediation in May 2002 with the Honorable Edward 

A. Infante (Retired). Plaintiffs settled with E&Y after mediation in November 2004 with the 

Honorable Layne R. Phillips (Retired). In accordance with Fed. R. Civ. P. 26(f), the parties 

discussed the possibilities for a prompt settlement or resolution of the case and believe that further 

mediation would not be productive at this time. 

PROPOSED CASE SCHEDULE

A. Initial Disclosures: Initial disclosures will be exchanged on May 19, 2006. 

B. Class Certification: Defendants stipulate to the action being certified as a class 

action under Fed. R. Civ. P. 23(a) and 23(b)(3) and to the appointment of lead plaintiffs M. Richard 

Andrews (“Andrews”) and the Jacksonville Police & Fire Pension Fund (“Jacksonville”) as class 

representatives, but defendants reserve their right to move to decertify the action as a class action 

and to object to the appointment of Andrews and Jacksonville as class representatives before the 

completion of fact discovery. 

The following schedule is predicated on the prompt production of discovery and scheduling 

of depositions. Should extensive motion practice become necessary, the schedule will have to be 

adjusted. 

C. Fact Discovery: Fact discovery shall conclude on January 31, 2007, with all motions 

related to fact discovery filed by February 16, 2007. 

D. Dispositive Motions: Opening summary judgment briefs shall be filed by March 16, 

2007; oppositions shall be filed by April 20, 2007; reply briefs shall be filed by May 11, 2007; and 

the hearing shall be held on May 25, 2007. 

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 4 of 11
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E. Expert Discovery: Expert reports shall be served by April 20, 2007; rebuttal reports 

shall be served by May 18, 2007; and expert discovery shall conclude on June 29, 2007. 

F. Trial: The trial shall begin on August 6, 2007. 

DATED: April 20, 2006 Respectfully submitted, 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

JEFFREY W. LAWRENCE 

CHRISTOPHER P. SEEFER 

/s/ Jeffrey W. Lawrence 

JEFFREY W. LAWRENCE 

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 

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 

ALAN SCHULMAN 

ROBERT S. GANS 

NIKI L. MENDOZA 

/s/ Robert S. Gans 

ROBERT S. GANS 

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 5 of 11
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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 

DATED: April 20, 2006 PILLSBURY WINTHROP SHAW 

 PITTMAN LLP 

BRUCE A. ERICSON 

JACOB R. SORENSEN 

KRISTIN M. LEFEVRE 

/s/ Bruce A. Ericson 

BRUCE A. ERICSON 

50 Fremont Street 

San Francisco, CA 94105 

Telephone: 415/983-1000 

415/983-1200 (fax) 

Attorneys for Defendant Bruce G. Rigione 

DATED: April 20, 2006 MORRISON & FOERSTER LLP 

JORDAN D. ETH 

MARGARET L. WU 

/s/ Margaret L. Wu 

MARGARET L. WU 

425 Market Street 

San Francisco, CA 94105-2482 

Telephone: 415/268-7000 

415/268-7522 (fax) 

Attorneys for Defendant Yinzi Cai 

DATED: April 20, 2006 COVINGTON & BURLING 

DAVID M. JOLLEY 

RICHARD A. JONES 

/s/ David M. Jolley 

DAVID M. JOLLEY 

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 6 of 11
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One Front Street 

San Francisco, CA 94111 

Telephone: 415/591-6000 

415/591-6091 (fax) 

Attorneys for Defendant John V. Hashman 

DATED: April 20, 2006 DLA PIPER RUDNICK GRAY CARY US LLP 

SHIRLI FABBRI WEISS 

PAUL A. REYNOLDS 

PETER L. WUCETICH 

/s/ Paul A. Reynolds 

PAUL A. REYNOLDS 

401 B Street, Suite 1700 

San Diego, CA 92101-4297 

Telephone: 619/699-3650 

619/699-2701 (fax) 

Attorneys for Defendant Jeremy R. Lent 

 I, Jeffrey W. Lawrence, am the ECF User whose ID and password are being used to file this 

Joint Case Management Statement and [Proposed] Order. In compliance with General Order No. 45, 

X.B., I hereby attest that Robert S. Gans, Margaret L. Wu, David M. Jolley, Paul A. Reynolds and 

Bruce A. Ericson have concurred in this filing. 

/s/ Jeffrey W. Lawrence 

JEFFREY W. LAWRENCE 

* * * 

CASE MANAGEMENT ORDER

The Joint Case Management Statement and [Proposed] Order is hereby adopted by the Court 

as the Case Management Order in the case, and the parties are Ordered to comply with this Order. 

DATED: _________________________ 

THE HONORABLE JEREMY FOGEL 

UNITED STATES DISTRICT JUDGE 

T:\CasesSF\NextCard\STM00029653.doc 

The Case Management Conference scheduled for May 26, 2006 is vacated. 5/23/06

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 7 of 11
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CERTIFICATE OF SERVICE

I hereby certify that on April 20, 2006, I electronically filed the foregoing with the Clerk of 

the Court using the CM/ECF system which will send notification of such filing to the e-mail 

addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I have 

mailed the foregoing document or paper via the United States Postal Service to the non-CM/ECF 

participants indicated on the attached Manual Notice List. 

 /s/ Jeffrey W. Lawrence 

 JEFFREY W. LAWRENCE 

LERACH COUGHLIN STOIA GELLER 

RUDMAN & ROBBINS LLP 

100 Pine Street, 26th Floor 

San Francisco, CA 94111 

Telephone: 415/288-4545 

415/288-4534 (fax) 

E-mail:JeffreyL@lerachlaw.com

Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 8 of 11
Mailing Information for a Case 5:01-cv-21029-JF 

Electronic Mail Notice List 

The following are those who are currently on the list to receive e-mail notices for this case. 

z Eric J. Belfi

ebelfi@murrayfrank.com 

z Gustavo Bruckner

bruckner@whafh.com 

z Joy Ann Bull

JOYB@lerachlaw.com 

z Paul J. Collins

pcollins@gibsondunn.com 

z Jonathan C. Dickey

jdickey@gibsondunn.com 

z Tamara J. Driscoll

z Alicia M. Duff

aliciad@blbglaw.com kayem@blbglaw.com 

z Bruce A. Ericson

bruce.ericson@pillsburylaw.com 

z Jordan David Eth

jeth@mofo.com 

z Mary Jane Edelstein Fait

fait@whafh.com 

z William Faulkner

wfaulkner@mfmlaw.com eschneider@mfmlaw.com 

z Lionel Z. Glancy

info@glancylaw.com 

z Michael M. Goldberg

info@glancylaw.com 

z Marc S. Henzel

mhenzel182@aol.com 

z Bruce J. Highman

attorneys@highman-ball.com 

CAND-ECF Page 1 of 3

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Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 9 of 11
z David M. Jolley

djolley@cov.com 

z Richard Allen Jones

rjones@cov.com 

z J. Andrew Keyes

akeyes@wc.com 

z Charles Thomas Kimmett

ckimmett@wc.com 

z Jeffrey W. Lawrence

jeffreyl@lerachlaw.com e_file_sd@lerachlaw.com;e_file_sf@lerachlaw.com 

z Kristin M. Lefevre

kristin.lefevre@pillsburylaw.com 

z William S. Lerach

e_file_sd@lerachlaw.com e_file_sf@lerachlaw.com 

z James McManis

jmcmanis@mfmlaw.com clarsen@mfmlaw.com;smaes@mfmlaw.com 

z Ira M. Press

ipress@kmslaw.com lmorris@kmslaw.com 

z Paul A. Reynolds

paul.reynolds@dlapiper.com 

z Laurence M. Rosen

lrosen@rosenlegal.com larry.rosen@earthlink.net 

z Alan Schulman

alans@blbglaw.com 

robert@blbglaw.com;kristinas@blbglaw.com;takeok@blbglaw.com;kayem@blbglaw.com 

z Christopher Paul Seefer

chriss@lerachlaw.com 

e_file_sd@lerachlaw.com;e_file_sf@lerachlaw.com;KiyokoF@lerachlaw.com 

z Jacob R. Sorensen

jake.sorensen@pillsburylaw.com 

z Shirli Fabbri Weiss

shirli.weiss@dlapiper.com 

z Margaret L. Wu

mwu@mofo.com pwolfe@mofo.com 

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Case 5:01-cv-21029-JF Document 335 Filed 05/23/06 Page 10 of 11
z John S. Yun

yunj@sec.gov johnstonj@sec.gov 

Manual Notice List 

The following is the list of attorneys who are not on the list to receive e-mail notices for this case (who 

therefore require manual noticing). You may wish to use your mouse to select and copy this list into 

your word processing program in order to create notices or labels for these recipients. 

Thomas Hamilton Burt

Wolf Haldenstein Adler Freeman Herz LLP 

270 Madison Avenue 

New York, NY 10016 

Patrick V. Dahlstrom

Pomerantz Haudek Block Grossman & Gross LLP 

1 North LaSalle Street 

Suite 2225 

Chicago, IL 60602 

Fred T. Isquith

Wolf Haldenstein Adler Freeman & Herz 

270 Madison Avenue 

New York, NY 10016 

Adam J. Levitt

Wolf Haldenstein Adler Freeman Herz LLC 

656 West Randolf, Suite 500W 

Chicago, IL 60661 

Marc A. Topaz

Schiffrin & Barroway. LLP 

280 King of Prussia Road 

Radnor, PA 19087 

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