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MARTIN D . CHITWOOD (pro hac vice) CRAIG G. HARLEY (pro hac vice) GREGORY E . KELLER (pro hac vice) DARREN T. KAPLAN (pro hac vice) MERYL W . EDELSTEIN (pro hac vice) CHITWOOD HARLEY HARNES LLP 1230 Peachtree Street, NE Promenade 11, Suite 2300 Atlanta, Georgia 30309 Telephone : (404) 873-3900 Facsimile : (404) 876-447 6 Lead Counsel for Plaintiffs PAUL E . BENNETT ( State Bar # 063318) GWENDOLYN R. GIBLIN ( State Bar #181973) GOLD BENNETT CERA & SIDENER, LLP 595 Market Street, Suite 230 0 San Francisco , CA 94105-2835 Telephone : (415) 777-2230 Facsimile : (415) 777-518 9 Liaison Counsel for Plaintiffs
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION
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In re PROVIDIAN FINANCIAL CORP .
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SECURITIES LITIGATION ) )
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)
Master File No. C-01-3952 CRB (JCS ) CLASS ACTIO N
This Document Relates to : All Actions ) )
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DECLARATION OF D . LEE JANVRI N RE : ADMINISTRATION AND PROCESSING OF PROOF OF CLAIM FORM S
24 25 26 27 Declaration of D . Lee Janvrin re : Administration and Processing of Proof of Claim Form s Master File No, C-01-3952-CRB
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNI A
SAN FRANCISCO DIVISIO N
In Re Providian Financial Corp . Securities Litigation
Master File No . C 01-3952 CRB
DECLARATION OF D . LEE JANVRI N RE ADMINISTRATION AND PROCESSING OF PROOF OF CLAIM FORM S
I D . Lee Janvrin, declare : 1 . I am employed by the firm of Gilardi & Co . LLC ("Gilardi°) , located at 3301 Kerner Boulevard, San Rafael, CA 94901 . Plaintiffs ' counsel retained Gilardi to serve as the Settlement Fun d administrator in the matter of In re Providian Financial Corporatio n Declaration of D . Lee Janvrin Page 1 of 8
Securities Litiga tion, Master File No . C 01-3952 CRB and to proces s all claims filed by class members in the action . I submit thi s affidavit in support of class plaintiffs` request for authorizatio n
to distribute the Net Settlement Fund to claimants whose claims have been accepted and for approval of the administrative recommendatio n by our firm in connection with accepting, rejecting and calculatin g
the claims filed by claimants herein . 2 . Under the terms of the Stipulation of Settlement clas s members were required to file a proof of claim form in order t o obtain their share of the Net Settlement Fund . The deadline fo r submitting claims was December 31, 2004 . 3 . The procedures followed by our firm in processing the claim s were as follows . Claimants were instructed to submit their proof o f claim forms to a post office box maintained by Gilardi . Each proo f
of claim was assigned a claim number when it was received and, i f duplicative claims were submitted, each was assigned a separate clai m number . The documentation provided in support of each claim by th e claimant was reviewed to ascertain whether the claimant purchased th e common stock of Providian Financial Corporation ("Providian") durin g
the period from June 6, 2001 through October 18, 2001, inclusive (th e "Class Period") . Claims were then reviewed to be sure that th e claimant was not one of the defendants or any excluded person in thi s action to the extent that the identity of such persons was known t o
Declaration of D . Lee Janvrin Page 2 of 8
us through the list of defendants and through the claimant' s
certification on the Proof of Claim form . 4 . A total of 10,506 separate claims were submitted . As explained below, a total of 8,349 are recommended for payment and a total of 1,894 claims are recommended for rejection . In addition,
a
total of 263 claims were submitted that were duplicative of othe r
claims filed by the same claimant . 5 . The 8,349 claims that were properly filed and supported wit h adequate documentary evidence and which are recommended for paymen t are reflected in the printout attached hereto as Exhibit A . Exhibi t A lists the Allowed Loss for each claimant, calculated pursuant t o
the Plan of Allocation approved by the Court . The total Allowe d Losses of all claimants recommended for payment is $2,555,507,276 . 6 . A total of 1,894 claims are reco mmended for rejectio n because : (i) there were no Class Period purchases of the commo n
stock of Providian listed in the claim ; (ii) there were purchases o f the common stock of Providian listed in the claim, but such purchase s were outside of the June 6, 2001 through October 18, 2001 Clas s
Period ; iii) no loss, per the Plan of Allocation, was realized fro m Class Period purchases of the common stack of Providian ; iv) th e
claimant submitted an incomplete and/or commingled claim ; v) th e claimant did not provide documentation of Providian common stoc k purchases ; vi) the claimant did not identify the actual beneficia l owner of the Providian common stock ; vii) the claimant requested tha t Declaration of D . Lee Janvrin Page 3 of 8
the claim be withdrawn ; and viii) the claimant previously requeste d to be excluded from the class in this action . In addition, a tota l
263 claims were submitted that were duplicative of another clai m submitted by the same claimant . A list of claimants whose claims ar e recommended for rejection and therefore the claimants will no t receive any payment are reflected in the printout attached hereto a s Exhibit B . Exhibit B also contains a code, which describes why a claim is defective . These codes are as follows : "N"= there were n o Class Period purchases of the common stock of Providian listed in th e claim ; "P"= purchases of the common stock of Providian were listed i n
the claim, but such transactions were outside of the June 6, 200 1 through October 18, 2001 Class Period ; "G"= no loss, per the Plan o f Allocation, was realized from purchases of the common stock o f
Providian listed in the claim ; "R"= the claimant submitted an incomplete and/or commingled claim ; "D"= the claimant did not provid e documentation of Providian common stock purchases ; "B"= the claiman t did not identify the actual beneficial owner of the Providian shares ;
"W"= the claimant requested that the claim be withdrawn ; "O"= th e claimant previously requested to be excluded from the class in thi s action and "M"= the claim is duplicative of another claim filed b y the same claimant . 7 . Where a submitted claim lacked the required information o r
documentation to substantiate purchases of the common stock o f Providian, or was otherwise ineligible, Gilardi contacted th e Declaration of D . Lee Janvrin Page 4 of 8
claimant advising him, her or it of the deficiency and requesting th e submission of the appropriate documentary evidence or correction o f
the defect . Each such claimant was also notified that unless th e deficiency was corrected, his, her, or its claim would be accepte d only to the extent of the documentation supplied, or that the clai m would be entirely rejected if the claimant did not supply th e required documentation . Samples of the Deficiency letters ar e attached hereto as Exhibit C .
8 . Claimants who submitted claim forms which showed that the y were ineligible to participate in the settlement (for example, wher e their claim form showed that they did not incur a loss per the Pla n of Allocation) were sent a Rejection Letter . The Rejection Letter ,
samples of which are attached hereto as Exhibit D, advised th e claimant of his, her or its right to request a review of th e administrative recommendation rejecting the claim . 9 . Several claimants initially requested a review of th e
administrative recommendation rejecting their claims ; however , Gilardi contacted each of these claimants to resolve their question s regarding the administrative recommendation . No claimants hav e outstanding requests for review of the administrative recommendatio n to reject their claim .
10 . Several claims were postmarked later than December 31 , 2004, the filing deadline stated in the notice of settlement sent t o class members . All such claims were accepted subject to cure o f Declaration of D . Lee Janvrin Page 5 of 8
other deficiencies, if any . No delay in the processing o r distribution of the Net Settlement Fund resulted from the provisiona l acceptance of these claims due to the time required to process th e
timely filed claims . These claims, which are valid in all respect s other than being submitted after the December 31, 2004 deadline, ar e included in the list of accepted claimants . 11 . Gilardi & Co . LLC has spent the time necessary to do a thorough job of processing the claims and to protect the interests o f
each class member filing a claim . No claims were rejected out o f hand and adequate time was spent communicating with such clas s members and suggesting appropriate ways they could document thei r
claims and participate in the settlement . Telephone calls an d letters from claimants to Gilardi & Co . LLC were courteously handle d and class members were assisted to the fullest extent possible . 12 . Claims which were properly filed and supported wit h adequate documentary evidence were recognized on the basis of th e
Allowed Loss formula as stated in the Plan of Allocation in th e Notice, which was previously approved of by the Court . 13 . We request that the Court enter an order providing that on e year after distribution of the Net Settlement Fund we are authorize d to destroy the paper copies of the Proof of Claim forms, and thre e years after distribution of the Net Settlement Fund we are authorize d
to destroy electronic copies of claim records .
Declaration of D . Lee Janvrin Page 6 of 8
14 . Gilardi & Co . LLC originally agreed with Plaintiffs ' Counsel to process the claims herein in consideration of paymen t of our standard hourly fees . Our actual hourly fees incurre d and to be incurred amount to
$171,745,
as shown on the invoice s
annexed hereto as Exhibit E . In our engagement it was als o
agreed that our out-of-pocket expenses would be reimbursed . Ou r actual out-of-pocket expenses incurred or expected to b e incurred will total $232,758, as shown on the invoices annexe d hereto as Exhibit E . To date, Gilardi & Co . LLC has been paid a total of $186,564 . Gilardi & Co . LLC respectfully requests th e Court to authorize the payment of the balance of its fees an d
expenses in the amount of $217,939 .
15 . For the foregoing reasons, it is respectfully requeste d that this Court enter an Order (1) approving Gilardi's administrativ e determinations accepting and rejecting claims as herein set forth ; (2) authorizing distribution of the Net Settlement Fund to th e accepted claimants ; (3) authorizing the payment of the balance of th e
fees and out-of-pocket expenses due to Gilardi & Co . LLC ; and (4 ) authorizing destruction of paper copies of Proof of Claim forms an d electronic copies of claim records after an appropriate time afte r the distribution of the Net Settlement Fund . I declare under penalty of perjury under the laws of th e State of California that the foregoing is true and correct . I f called as a witness, I could and would competently testif y Declaration of D . Lee Janvrin Page 7 of 8
thereto . Executed this 26th day of July, 2006 at San Rafael, California .
D . Lee Janvri n
Declaration of D . Lee Janvrin Page 8 of 8
Exhibit A - Part I
PVFC2
PROVIDIAN SECURITIES LITIGATIO N
Claims Reccmended for Payment--In Claim Number Sequence Selection Ran es ; Loss (1 thru 999,999,999,999 ) Claim Claimant Name Allowed 100001-2 *ARGENTO TRADING COMPANY LP 100002-0 *LAMPEN FAMILY TRUST 100003-9 ARCHIBALD*BAIRD 100005-5 DANNIE*HO 100006-3 SUE*DEKALB 100007-1 GERALD*POZNANOVICH 100008-0 BERNARD J*KLEMIN 100009-B CRAIG*TUCHIA4N 100011-0 DAVID*GLASER 100012-6 100013-6 100014-4 100016-0
*MILLENCO LP *MARTIN MEMORIAL HEALTH SYSTEMSPEN *PUBLIC HEALTH TRUSTDEFINED BENEFI B S*LATINER GENERATION SKIPPING
100017-9 *CLARK REX B 100018-7 WILLIAM A & DORYIEY A*RNOKE TRUST
Loss 832,525 .00 7,544 .40 1,877 .00 2,159 .00 5,860 .00 19 .00 2,565 .00 393 .00 662 .00
26,305,544 2,786 86,434 13,995
.50 .00 .00 .00
Claim Claimant Name 100063-2 TNT-LDN-GIC/*BATTERYMARCH FINANCIA 100064-0 TNT'-LDN-RBS TST*SAUTM SCHRODER MAN 100065-9 TNT-LDN-'SEVERN TRENT PIF-SCHROOER 100066-7 TNT-LDN-TEE*SUNDANCE TRUST U/A 100068-3 TNT-LDN-'FALKIRK COUNCIL PENSION 100069-1 TNT-LDN-CET01-*COLLINS 100070-5 TNT-LDN-GP.K99-*GAK-SSGA RESTRUCt3AK 100071-3 TNT-LIST-CALVIN*KLEIN 2001 100072-1 TNT-LEN-GPI01 -*GREENPASS 100073-0 100074-8 100075-6 100076-4
TNTJ.DN-XYZZY*CHARITABLE REMAINDER *BANK OF ROTS-SL BANK OF *GCM AMERICAN EQ 7ANERICPN BANK OF*BOTS-SL BARCLAYS
07/28/2006, 16 :4 7
Allowed Los s 42,661 .0 0 6,323 .0 0 35,773 .0 0 3,416 .0 0 52,755 .0 0 4,580 .00 70,687 .00 5,218 .00 1,449 .00 3,416 207,963 124,923 304,848
.00 .00 .00 .0 0
66,861 .00
100077-2 'ITS'-LDN-GCCO1-*STRATHCLYDE-SL SCAR
285,817 .0 0
3,913 .00
100078-0 TNT-LDN-GCC10*STRATHCCLYDE-SL SCE
14,453 .0 0
100019-5 *GOLD STANLEY P IRA -IR 100021-7 *NORTHERN TRUST INDIVIDUAL
Run Date :
296 .00 29,448 .00
100079-9 =-LDN-*GIC/AXA ROSENBERG 100080-2 =-LDN'CIVIL AVIATION AUTHORITY
100023-3 EM & MA*HAMILTOiV CRUT 6/4/O1HAMILT 100024-1 *NORTHERN TRUST INDIVIDUAL 100025-0 *NORTHERN TRUST INDIVIDUAL
3,124 .00 2,429 .00 1,108 .00
100081-0 TNT LND-*E VIR TT AGENCY ACTIVE 100082-9 TNT-IDN-*ENVIRONMENT' AGENCY ACTIVE 100084-5 *EU,2ITABLE LF-SL ASSURANCE
100026-8 MCA TR B FBO FRANK C *[ NNE 100027-6 MCKRNNEY TR A FBO MARVIN JOE *MCKE 100028-4 *HABER RESIDUAL TRUST 100029-2 *HABER HELEN R 100030-6 CHARLES N*FOURNIER - CREDIT
3,150 3,162 2,163 1,544 7,138
100086-1 100087-0 100088-8 100089-6 100090-0
.00 .00 .00 .00 .50
NIGI*GOLLECTIVE DAILY RUSSELL NTGI*COMMON WEEKLY S&P 500 NIGI*COh4ON DAILY RUSSELL 1000 CRO *NIF DIVERSIFIED GROWtH PORTFOLIO *NIF EQUITY INDEX PORTFOLIO
46,761 .0 0 205,675 .0 0
104,826 .0 0 13,464 .0 0 1,618,463 .0 0 135,458 .0 0 488,849 .0 0 77,575 .0 0 3,391 .0 0 70,409 .0 0
100034-9 THE MUSEUM OF*Cx:NTEMPORARY ART 100035-7 ELIZABETH M *FRANKEL
4,653 .00 28,754 .00
100091-8 *NORTHERN MID CAP GROWTH FUND 100092-6 NDGI-COLLECTIVE DAILY S&P
908,632 .0 0 133,926 .0 0
100036-5 REBECCA S *FRANKEL 100037-3 *HUNT SWANEE 100038-1 *ANSBADHER CHARLES
28,754 .00 16,632 .00 6,237 .00
100093-4 NTGI'COLLECTIVE WEEKLY S&P 500 100094-2 NTGI'COLLECTIVE DAILY S&P 500 100095-0 *NF-STOOK INDEX
460,823 .0 0 555,711 .0 0 8,851 .0 0
100040-3 COMMUNITY FOUNDATION FOR*PALN1 BEAC 100041-1 *WESTERN SURETY COMPANY 100042-0 NT- LEN-SPSO1-*SPS GLOBAL EQ-SL EQU
18,614 .00 3,954 .00 65,402 .00
100096-9 *PORTLAND GENERAL ELECTRIC PENSION 100097-7 *S1JDA/HURWITZ MED CORP 4011