Rabin & Peckel LLP Commences Class Action Against NextCard, Inc. and Certain of Its Officers and Directors Alleging Violations of Federal Securities Law.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 19, 2001

A class action complaint has been filed in the United States District Court for the Northern District of California, case number C-01-4318 PJH, on behalf of all persons or entities who purchased NextCard, Inc. ("NextCard" or the "Company") common stock (Nasdaq: NXCD) between March 30, 2000 and October 30, 2001, both dates inclusive (the "Class Period").

NextCard, Jeremy R. Lent, John V. Hashman, and Bruce G. Rigione are named as defendants in the action.

The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 by issuing a series of materially false and misleading statements about the Company's financial results for fiscal 1999, 2000, and the first two quarters of 2001. In particular, it is alleged that the Company improperly classified certain losses on loans as "fraud losses" rather than as "credit losses" in order to avoid increasing its loan loss reserves thereby enabling it to report gains on the securitization of credit card receivables and maintain its "well capitalized" status. The Complaint alleges that as a result of these false and misleading statements the price of NextCard common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages and enabling certain defendants and NextCard insiders to sell their NextCard stock at artificially inflated prices for proceeds of approximately $9 million.

Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com .

If you purchased NextCard common stock during the Class Period described above, you may, no later than December 31, 2001, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Maurice Pesso or Eric Belfi, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], or by e-mail at [e-mail].