UNITED STATES @STRICT COURT
DISTRICT OFT MINNESOTA
I
HERBERT DONNER HACK, on Behalf of Court File No.
Himself and All Others Similarly Situated,
Plaintiff,
CLASS ACTION
V. FOR VIOLATION
FEDERAL SECURITIES
METRIS COMPANIES, INC.,
RONALD N. ZEBECK and DEMAND FOR JURY
DAVID WESSELINK,
Defendants.
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Plaintiff, through his attorney, brings this action on behalf of himself and
situated, and on personal knowledge as to himself and his activities, and on information
as to all other matters, based on investigation conducted by counsel, hereby alleges as
NATURE Oi? THE CASE
1. This is a class action on behalf of all purchasers of Metris
or the "Company") securities between November 5, 2001 and July 17, 2002 inclusive (the
Period"), seeking remedies under the Securitieb Exchange Act of 1934 (the "Exchange
Defendants are Metris, its Chief Executive Officer and Chairman of the Board Ronald
its Vice Chairman David Wesselink.
2. Metris is in the business of providilng financial products and services,
cards. The Company issues credit cards through is wholly owned subsidiary, Direct
Card Bank, N.A. ("Direct Merchants" or the "Bank"), the tenth largest bankcard issuer in
SNIPPETS:
This is a class action on behalf of all purchasers of Metris Companies,
seeking remedies under the Securitieb Exchange Act of 1934.
its Vice Chairman David Wesselink.
Metris is in the business of providilng financial products and services,
The Company issues credit cards through is wholly owned subsidiary, Direct Merchants Credit
Card Bank, N.A., the tenth largest bankcard issuer in the United
As part c their regulatory and supervisory functions, OCC
capital, earnings, liquidity, sensitivity to market isk, and compliance with consumer banking
defendants in a Report of Examination.
risk assessment, debt forbearance, allowance fc loan and lease losses and internal controls.
0 133 1 and 13 3 7, and $27 of the Securities Excl nge Act of 1934 (15 U.S.C.
misleading information, occurred in this distric
subsidiary, Direct Merchants Credit Card Bank, N.A., the tenth largest bankcard issuer in the
Defendant Ronald N. Zebeck is, and at all relevant times was, the
promptly and accurately with respect to the Co parry's operations, products, markets,
Wesselink's representations during the Class eriod violated these specific requirements and
Interagency Guidance on Sub6prime Lending I:viously issued in 1999 (" 1999 Guidelines").
activities by certain insured depository institutic s and their subsidiaries.
Subprime loans are loans to borrowers displayi; one or more of these characteristics at the
The findings ultimate1 resulted in a consent agreement ("Consent Order")
The decision to change Metris' delinquent account charge-off policy from
Vice chairman David Wesselink said that bad-debt chargeoff rates for the
Metris chairman and chief executive officer Ronald N. Zebeck said during a Jan. 16
"I've learned that, in the next recession, I'm shorting financial-service stocks," he
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