Credit-card provider Providian Financial was bought heavily. The company posted a 100% gain in first-quarter net, the fifth quarter in a row of accelerating profit growth. The stock quadrupled since October. It remains in a solid up trend.
PVN is taking KRB down please see CBS news.
By Richard Cole, CBS MarketWatch Last Update: 10:23 PM ET May 19, 1999 Movers & Shakers
SAN FRANCISCO (CBS.MW) -- Shares of Providian Financial Corp. plunged Wednesday after local media reported that the San Francisco district attorney's office has opened a consumer fraud probe directed at the credit-card company.
Shares of the San Francisco-based company closed down 17 3/16, or 14 percent, to 106 15/16.
The San Francisco Chronicle and KRON-TV reported Wednesday afternoon that Oakland's Better Business Bureau had received 850 complaints -- more than on any other company -- from irate Providian customers. Many said the company had sent them credit cards unsolicited, then charged monthly fees.
"The allegations are that there are unfair business practices," Clarence Johnson, spokesman for the DA's office, told the Chronicle. "This is something that came to our attention several months ago. We got a lot of complaints."
Providian (PVN: news, msgs) spokeswoman Laurie Cole said the company will cooperate with any investigation and is looking into the Better Business Bureau complaints.
"We are taking every question and criticism into careful account," Cole said.