Providian Financial Corp.

The company has settled a class action securities fraud suit. The lawsuit claims that the company, which issues credit cards, inflated its earnings by charging its customers extra fees, an issue which was settled for $305 million in June 2000. The suit also says that both the Providian chairman and vice-chairman and the company itself should have known about the false and omitted information given out during the time that the extra fees were being charged. Both of the executives have resigned or demoted themselves. Even though the company was forced to pay, it denies any illegal behavior in the issues related to the previous lawsuit. Most people only gained small sums from that case, while many lawyers earned millions more. The company also claims no unlawful activity in this case either. (March-21-02) [SAN FRANCISCO BUSINESS JOURNAL]