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To: John Pitera who wrote (43246)	5/26/1999 3:53:00 PM
From: Cynic 2005	Respond to of 86076

*PRUDENTIAL DROPS PROVIDIAN FINANCIAL <PVN.N> AS SINGLE BEST IDEA--SOURCES --------- Dow Jones Newswires -- May 26, 1999 DJ Providian Dn; Lawsuit Seeks Class-Action Status -Report NEW YORK (Dow Jones)--Providian Financial Corp. (PVN), the San Francisco credit-card issuer, saw its stock decline 15% Tuesday, following reports that a cardholder sued the firm - and would seek class-action status for the suit - alleging unfair deceptive business practices. The lawsuit, filed in San Francisco Superior Court on Friday, comes on the heels of an investigation by the San Francisco District Attorney's office, which is probing the company for a range of alleged unfair business practices including the sale of credit cards, disclosure of terms, and collection of debt. The investigation was prompted after the D.A. and another consumer affair outlet received a string of complaints, according to media reports from KRON-TV and the San Francisco Chronicle and the San Francisco Examiner. Officials from Providian said they "have not been served" a lawsuit, and declined comment on the stock's activity. However, in response to the D.A.'s investigation, the company said last Wednesday that it's confident they are in compliance with all applicable laws and regulations, and would cooperate fully if an investigation were being conducted. Shares of Providian, known for targeting consumers with blemished credit histories, were recently off 13 3/8, or 13.9%, at 82 5/8, on volume of nearly 5.4 million shares, compared with an average daily turnover of 1.1 million. The San Francisco attorney representing the cardholder filing the suit could not immediately be reached for comment. - Tara Siegel; 201-938-5288; tara.siegel@dowjones.com