Court filing
Statement of Facts — In re Bank of America California Unemployment Benefits Litigation (Dkt. 589-2, S.D. Cal. No. 3:21-md-02992)
Filed October 17, 2025 in In re Bank of America California Unemployment Benefits Litigation; one of 1415 filings from this case.
Record facts
| Court | U.S. District Court for the Southern District of California |
|---|---|
| Filed | 2025-10-17 |
U.S. District Court for the Southern District of California · No. 3:21-md-02992-GPC-MSB · Doc. 589-2 · 2025-10-17 · Docket on CourtListener
Full text
BANA’S SUF ISO MOT. FOR PARTIAL SJ
CASE NO. 21-MD-02992-GPC-MSB
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GOODWIN PROCTER LLP
ATTORNEYS AT LAW
JAMES W. MCGARRY (pro hac vice)
JMcGarry@goodwinlaw.com
GOODWIN PROCTER LLP
100 Northern Avenue
Boston, MA 02210
Tel.: +1 617 570 1000
Fax: +1 617 523 1231
SABRINA M. ROSE-SMITH (pro hac vice)
SRoseSmith@goodwinlaw.com
MATTHEW L. RIFFEE (pro hac vice)
MRiffee@goodwinlaw.com
GOODWIN PROCTER LLP
1900 N Street, NW
Washington, DC 20036
Tel.: +1 202 346 4000
Fax: +1 202 346 4444
Attorneys for Defendant
BANK OF AMERICA, N.A.
[ADDITIONAL COUNSEL LISTED IN SIGNATURE BLOCK]
UNITED STATED DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF CALIFORNIA
SAN DIEGO DIVISION
IN RE: BANK OF AMERICA
CALIFORNIA UNEMPLOYMENT
BENEFITS LITIGATION
Case No. 21-MD-02992-GPC-MSB
DEFENDANT BANK OF
AMERICA, N.A.’S SEPARATE
STATEMENT OF UNDISPUTED
MATERIAL FACTS IN SUPPORT
OF MOTION FOR PARTIAL
SUMMARY JUDGMENT
Date:
April 17, 2026
Time:
1:30 p.m.
Ctrm:
12A – 12th Floor
Judge:
Hon. Gonzalo P. Curiel
ORAL ARGUMENT REQUESTED
FILED PROVISIONALLY UNDER SEAL
PURSUANT TO STIPULATED PROTECTIVE
ORDER
Case 3:21-md-02992-GPC-MSB Document 589-2 Filed 10/17/25 PageID.39639
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BANA’S SUF ISO MOT. FOR PARTIAL SJ
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TABLE OF CONTENTS
Page
I.
THE EDD AGREEMENT AND ACCOUNT AGREEMENTS ..................... 1
II.
PUA EXPANDED BANA’S EDD PREPAID CARD PROGRAM. .............. 6
III.
PUA WAS TARGETED BY FRAUDSTERS. ................................................ 8
A. Fraudsters Targeted EDD and PUA. ........................................................... 8
B. Fraudsters Targeted BANA’s Claims System. ......................................... 12
IV. BANA’S CLAIM FRAUD FILTER .............................................................. 14
V.
THE ACCOUNT-FREEZE RESPONSE ....................................................... 21
VI. THE COMPENSATION PAID TO CLASS MEMBERS ............................. 26
VII. PLAINTIFFS’ EXPERTS’ OPINIONS ......................................................... 34
VIII. BANA’S CALL CENTERS ........................................................................... 39
IX. MAGNETIC STRIPES AND EMV CHIPS .................................................. 42
X.
PLAINTIFFS’ REMAINING ALLEGATIONS ............................................ 45
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GooDWIN PROCTER LLP
ATT'ORN£YSATLAW
Pursuant to Fed. R. Civ. P. 56(c) and L.R. 7.l(f)(l), Defendant Bank of
America, N.A. (BANA) submits this separate statement of undisputed material facts
(SUF) in support of its Motion for Partial Summary Judgment. 1
UNDISPUTED MATERIAL FACTS
PLAINTIFFS' RESPONSE
I. THE EDD AGREEMENT AND ACCOUNT AGREEMENTS
1. The Employment Development
Department (EDD) administers federal
and state unemployment insurance (UI)
in California.
DX 39 at -2355-56, -2373, -2412; DX
40.A at -1500.
2. EDD made benefits available in two
ways: via paper check or via a prepaid
debit card (prepaid card) issued by
BANA.
DX 14.B 32:10-14, 76:22-24; RJN 13 at
6; see, e.g., DX 14.AF 58: 19-60: 13; DX
16 at No. 3; DX 14.T 83:5-84:1; DX
14.W 242:1-7; DX 14.AC 61:8-12.
3. EDD benefits recipients could choose
whether to receive benefits via check or
via a prepaid card.
RJN 13 at 6; see, e.g., DX 14.B 32: 10-14,
76:22-24; DX 14.AF 60:9-13; DX 16 at
No. 3; DX 14.T 83:5-84:1; DX 14.W
242:1-7; DX 14.AC 61:8-12.
4. In 2010, EDD issued a Request for
Proposal (RFP) with requirements for
prepaid card services for its UI program.
BANA submitted a proposal, EDD
selected BANA, and EDD and BANA
entered into a contract.
DX 1,r 5;see DX 14.B 54:19-24.
5. In 2015, EDD issued an RFP to extend
the contract and to specify new
requirements for its prepaid card
program. BANA submitted a proposal,
1 DX # are exhibits to the Declaration of Laura G. Brys in Support ofBANA's Mot.
for Partial Summary Judgment. RJN # are exhibits to the Declaration of Laura G.
Brys in Support ofBANA's Request for Judicial Notice (RJN).
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EDD selected BANA, and EDD and
BANA entered into a new contract. The
2010 contract, as modified by the 2015
RFP, collectively, are the EDD
Agreement.
DX 39 at -2286, -2349-523, -2524-837;
DX 14.B 54: 12-55:20; DX 1 ,r 6.
DX 157 at-0333; DX 14.Q 72:22-73:2,
112:16-20; DX 11.B ,r,r 17, 29-30; DX 1
,r 7; see DX 39 at -2356, -2373, -2694;
DX 14.Y 52:21-53:8.
7. The EDD Agreement stated that
BANA should "flag . .. account[ s] for
further review" to "alert rEDDl of the
possibility of benefits enrollment fraud
and allow [EDD] to conduct further
investigation."
DX 39 at -2760.
26
DX 4 ,r 16; DX 159 at -2326; DX 11.B
,r 49; see DX 14.Y 51 :25-52:20, 165:8-
27
166:16.
28
10. The EDD Agreement did not require
GooDWIN PROCTER LLP
ATT'ORN£YSATLAW
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EMV chips.
DX 39 at-2462, -2741; DX 14.S 65:15-
20, 78: 13-22; see DX 5 ,r 11.
11. The EDD Agreement stated that EDD
prepaid cards must be equipped with "no
less than an ISO 7811-compliant high
coercivity magnetic strip."
DX 39 at -2462, -2741; DX 1 ,r 17.
12. Throughout the EMV Class period,
BANA's EDD prepaid cards included no
less than ISO 7811-compliant high
coercivity magnetic stripes.
DX 39 at -2741 , -2850; DX 14.C
120:14-16, 125:12-127:1; DX 14.N
182:15-22,183:11-184:2.
13. ISO 7811 does not require EMV
chips.
DX 39 at-2850; DX 14.C 120:14-16,
125: 12-126: 12.
14. The EDD Agreement stated that any
"significant change ... to the project
scope" or amendment to the EDD
Agreement required EDD's prior
approval and an executed modification.
DX 39 at -2423, -2651; DX 14.B 186:8-
188:4.
DX 1 ,r 18; DX 14.B 186:8-188:4; DX 39
at-2423, -2462, -2651, -2741 ; DX 14.S
65: 15-20, 78: 13-22; see DX 117 at -8289.
16. In March 2021, EDD and BANA
entered into a letter agreement to modify
the "ISO 7811-com liant" re uirement. It
stated that
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DX 39 at -2850; see DX 14.B 187:22-
GooDWIN PROCTER LLP
ATT'ORN£YSATLAW
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190: 17.
DX 39 at -2845-49; DX 54; DX 14.B
68:17-70:5.
18. BANA did not charge EDD for its
services under the EDD Agreement.
DX 39 at -2286, -2413, -2458, -2738;
DX 1 i! 13.
19. The EDD Agree~ent provid
DX 14.B 46:11-49:11; DX 1 ,r 13; see
DX 170; DX 55.
20. The EDD Agreement stated that a
"Trust Account" for EDD prepaid funds
would be used "[f]or the purpose of
calculating [EDD's] revenue share."
DX 39 at -2482, -2518, -2832-37.
approx1ma e
DX 155; DX 55; DX 1 ,r 12.
22. BANA's expenses for the EDD
prepaid program in
approximate~y
were approx1ma e y
DX 1 ,r 12; DX 170; DX 154; DX 125.
23. In late 2023, EDD and BANA agreed
that the EDD Agreement would not be
renewed, and that BANA would cease
providing prepaid cards for EDD.
DX 3 ,r 15; RJN 9.
24. EDD stopped funding benefits
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ATTORNEYS AT LAW
through BANA-issued cards on February
15, 2024.
DX 3 ¶ 17; RJN 9.
25. By April 30, 2024, BANA closed all
EDD prepaid cards and accounts.
DX 1 ¶ 10; see RJN 9.
26. The EDD Agreement expired in July
2025.
DX 1 ¶ 10.
27. BANA had a contract (Account
Agreement) with each EDD benefits
claimant that was provided with each
prepaid card and was also available
online.
DX 40.A; DX 40.B; DX 1 ¶ 8.
28. The Account Agreement said that
BANA could freeze EDD prepaid cards if
it “suspect[ed] irregular, unauthorized or
unlawful activities may be involved with
[the] Account,” and that BANA could
maintain the freeze “pending an
investigation of such suspected
activities.”
DX 40.A § 2.
29. The Account Agreement also said
“[BANA] may restrict access to your
Card if [BANA] notice[s] suspicious
activity.”
DX 40.A § 3.
30. The Account Agreement stated “[i]f
funds to which you are not entitled are
deposited to your Account by mistake or
otherwise, [BANA] may deduct these
funds from your Account.”
DX 40.A § 2.
31. Section 5 of the Account Agreement
stated “[y]ou will . . . [n]ot disclose your
PIN or record it on your Card or
otherwise make it available to any one
else.” It further stated “you will . . .
[p]romptly notify us of any loss or theft
of your Card or PIN[] and [b]e liable for
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the authorized or permitted use of your
Card and PIN."
DX40.A § 5.
32. The Account Agreement limited
BANA's liability for unauthorized
transactions to the "face amount of any
unauthorized card transaction," and
stated that BANA is "not liable for any
claims of special, indirect or
consequential damages."
DX40.A § 9.
33. The Account Agreement did not
include requirements for call centers or
cards with EMV chips.
DX40.A.
II. PUA EXPANDED BANA'S EDD PREPAID CARD PROGRAM.
34. The U.S. unemployment rate rose
from 4.4% in March 2020 to 14.8% in
April 2020, and to over 16% in
California.
RJN 7 at 7; RJN 15 at 6-7.
35. In March 2020, Congress passed the
Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), which
created the Pandemic Unemployment
Assistance program (PUA).
RJN 12 at 14-15; DX 11.B ,r 25; DX 8.A
,r,r 25-26.
36. PUA extended unemployment
benefits to those not previously eligible
under traditional unemployment systems,
including self-employed individuals,
contract workers, gig workers, and under-
employed workers.
RJN 12 at 14-15; DX 11.B ,r 25; DX 8.A
,r,r 25-26; RJN 15 at 5-6.
37. PUA allowed claimants to file for
benefits without former employer
verification of wage or salary history.
See DX 4 ,r 20; RJN 12 at 25; DX 11.B
,r,r 25-26; DX 8.A ,r 27.
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38. Beginning mid-March 2020, EDD
loosened its own requirements for
verification of former employment,
prioritizing rapid distribution of benefits
even though it acknowledged the cost of
an increased risk of fraud.
RJN 12 at 28-29; DX 11.B ,r,r 26-27.
39. In March 2020. there were
approximately-
active EDD
prepaid cardho~-
s with a total monthly
fund load of about
DX 167; DX 11.B ,r 31; DX 111 at-4701.
40. By
, the total monthly
fund 1
prepaid cards was
over
DX 167.
41. By
approx1ma e
prepaid cardho
ewere
active EDD
DX 111 at -4701; DX 11.B ,r 31.
42. Between
AN
in bene 1 s on o more t an
EDD prepaid cards.
DX 119.
43. Brad Garfield, the executive
resp
·ble for overseeing comt?er •
DX 106; DX 137; DX 1 ,r 22; DX 14.B
31 :8-32:9.
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DX 14.B 31:8-32:22, 78:19-79:7; DX 1
il 23; see DX 110; DX 166; DX 138;
DX 93; DX 115 at -7034.
III. PUA WAS TARGETED BY FRAUDSTERS.
A. Fraudsters Targeted EDD and PUA.
46. Congress, federal regulators, and
California's State Auditor (CA Auditor)
all concluded that the PUA and failings
by UI benefits administration agencies
(including EDD) resulted in fraud losses
that other agencies estimated reached at
least $200 billion.
See RJN 12 at 28-46, RJN 2 at 1-3;
DX 11.B ,r,r 32-36.
4 7. Some estimated that California
incurred approximately $32 billion in
fraud losses, and the CA Legislative
Analyst's Office attributed the
"[ o ]verwhelming majority" of fraud to
PUA's "lower standard of identity and
wage information" "due to federal
policymakers' decision to prioritize
immediate assistance."
RJN 16; RJN 11 at 5; see also DX 11.B
,r 21.
48. The Department of Labor (DOL)
reported that PU A had an improper
payment rate of 35.9%.
RJN 12 at 6, 22, 27.
49. The U.S. House Ways and Means
Committee reported in 2025 that
improper PUA payments were estimated
to be up to $400 billion nationwide,
approximately a 40% loss.
RJN 14 at 1; RJN 19 at 1, 4.
50. In September 2024, the U.S. House
Oversi ht Committee re orted that "EDD
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staff ... adopted a 'pay and chase' model
and processed incoming claims quickly;
EDD staff understood that less time
should be spent on checking eligibility of
claimants as this would slow down
paying out benefits. This led to many bad
actors like international organized crime
and individual criminals cashing in while
eligible claimants were unable to obtain
their benefits."
RJN 12 at 7, 28.
51. The CA Auditor reported in January
2021 that EDD failed to implement fraud
detection or identity verification
technology until late October 2020,
ignored repeated warnings from DOL's
Office of Inspector General, and
approved approximately $10.4 billion in
benefits with no identity verifications.
RJN2 at 1, 8-9, 14-17, 20, 29.
52. The CA Auditor discovered and
reported that EDD had mailed at least 51
million documents to benefits claimants
between 2017 and 2020 that included
their full Social Security numbers.
RJN 1 at 1-2.
53. The Secret Service issued an alert in
May 2020 stating that a Nigerian fraud
ring was exploiting the pandemic to
commit "large-scale fraud against state
unemployment insurance programs."
RJN5; DX4 ,r 13.
54. By Summer 2020, BANA was
notified by federal, state, and local law
enforcement that personal information
stolen during past data breaches at other
companies and sold on the dark web was
being used by fraudsters to a 1 for
PUA and other UI benefits.
RJN 5; RJN 4 at 1; DX 134 at-2982;
DX 136 at -0162; DX 4 ,r,r 11-15;
DX 11.B ,r,r 32-36.
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DX 151; DX 14.B 99:16-19.
56. Because the pandemic-related fraud
targeted federal and state funds, BANA
considered itself obligated to take
measures to protect taxpayers.
See DX 134 at 2981-83; DX 53; DX 153;
DX 134; DX 100; DX 80.
57. BANA's antifraud experts in its
Global Financial Crimes (GFC) group
conducted their own investigation into
the reports of pandemic-related fraud. By
Summer 2020, GFC observed that the
fraud was facilitated b :
DX 14.Q 113:4-113:8; DX 102; DX 4
,r 20; DX 11.B ,r,r 25, 32-36.
58. GFC, along with BANA's Global
Information Security (GIS) tea
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DX 4 ,r 18; RJN 22; RJN 21; RJN 12 at
45; DX 11.B ,r 46.
See, e.g., DX 98, DX 136, DX 83;
DX 14.H 15:9-17:1; DX 14.Q 134:4-10;
DX 14.AD 31:9-20, 35:3-18; DX 4
,r,r 17-20; DX 11.B ,r,r 50-51.
DX 4 ,r 21; DX 134 at-2985; see, e.g.,
DX 77; DX 161; DX 162; DX 14.B
124:16-19; DX 11.B ,r 41.
64. BANA came to the beliefbv Aulllist
2020 that
DX 4 ,r 22; DX 14.Q 105:8-109:15;
DX 14.B 126:13-127:12; DX 168; see
RJN 15 at 15, 49-55.
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DX 77; DX 161; DX 162; DX 142; DX
14.B 124:16-19; DX 134 at -2985; DX
100 at -4522; see also DX 61;
DX 97; DX 4 ,r 21.
66. On September 25, 2020, on EDD's
•
•
BANA froze
•
DX 79 at -6223; DX 11.B ,r 41.
68. In mid-September 2020, California's
governor shut do
eeks,
RJN 8; DX 84 at -7750; DX 112; DX 4
,r 22; DX 14.Q 109:7-109:10; see also
DX 11.B ,r 26.
69. Throughout the pandemic, FinCEN
and the Secret Service issued alerts to
BANA and others about rising UI fraud,
encouraging banks to perform additional
inquiries and investigations to identify
"red flags" indicating fraud, including
suspicious, rapid disbursements from
benefits accounts.
See e.g., RJN 3; RJN 5; see SUF ,r 53.
B. Fraudsters Targeted BANA's Claims System.
70. EFTA and Reg E protect prepaid card
users from certain losses if the use was
unauthorized. Unauthorized transaction
claims, and certain other account errors,
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are defined by Reg E as "error claims."
See 15 U.S.C. § 1693 et seq.; 12 C.F.R.
pt. 1005; see also DX 10.A ,r,r 20-22.
DX 14.E 59:8-61 :9; DX 50 at -2863-66;
DX 14.G 19:6-12; DX 14.Y 142:3-25.
72. In January 2020, BANA received
approximately I error claims per week
from EDD prepa1 cardholders; by
September 2020 BANA received
approximate!
error claims er
week,
DX 30.A at No. 32; DX 14.E 60:25-61 :9.
73.
DX 14.E 59:8-61:9; DX 14.G 32:12-
33:3; DX 14.M 55:13-58:8; DX 14.Y; see
DX 10.A ,r 46.
See DX 4 ,r,r 26, 30; DX 14.Q 145:4-
149: 19; DX 14.E 60:25-61:9; DX 133;
DX 145 at -0517; DX 11.B ,r 46.
75. BANA's investigations determined
many EDD error claims were likely
fraudul
•
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ATT'ORN£YSATLAW
DX 62; DX 98; DX 136; DX 83;
DX 146; DX 86.
7 6. B late Summer 2020, B
'
.
.
.
DX 84; DX 171 at -7599-60; DX 140;
DX 14.Q 145:4-149:19; DX 14.AD
131:9-132:2; DX 14.L 293:12-15; DX 4
,r 26; DX 11.B ,r 48; DX 10.A ,r 43; DX
14.Y 204:13-22.
IV. BANA'S CLAIM FRAUD FILTER
77. AML laws require BANA to monitor
transactions, report on suspicious
financial activity, and deter criminals
where fraudulent activity is suspected.
31 U.S.C. §§ 5311-5336; 12 U.S.C.
§§ 1829b, 1951-1960; 31 C.F.R. pt.
1020;DX 14.H 16:18-17:12; DX4,r4;
DX 11.B ,r,r 16, 22.
78. BANA also has safety-and-soundness
obligations that require it to respond to
frauds directed against BANA itself.
12 C.F.R. pt. 30; DX 10.A ,r,r 14-19;
DX 14.Y 169:24-170:2.
DX 4 ,r,r 26-29; DX 14.Q 75:9-77:18,
98:14-21, 145:4-149:19; DX 14.AD
131:9-132:2; DX 14.L 293:12-15;
DX 84; DX 11.B ,r 48.
80. In late Summer 2020. GFC and GIS
were tasked with
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DX 75; DX 14.Q 42:22-45:3, 299:12-
301:19; DX 14.L 173:2-174:9; DX 14.S
136: 17-137:3, 138: 17-140:7, 141: 15-
142:21, 143:10-144:9, 145:24-146:12;
DX 14.A 136:3-137:14; DX 4 ,r 29; see
DX 83, DX 146.
DX 83; DX 146; DX 86; DX 62; DX 98;
DX 136; DX 4 ,r 30; see SUF ,r 31.
82. The indicia of fraud identified by
GFC and GIS were ultimately developed
into the fraud strategy known as the
Claim Fraud Filter CFF
DX 145; DX 14.Q 97: 17-99:20, 177: 1-
181: 13; DX 14.H 52:3-53:8; DX 14.AA
31:17-22; DX 4 ,r,r 31-32.
DX 14.H 16:18-17:12, 43:13-25; DX
14.
73:40-75:3; DX 14.AD 71:21-78:9,
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235: 15-23.
DX 14.H 27:5-23, 47:5-17; DX 4 ,r 33;
DX 14.Y 55:2-56:19; DX 11.B ,r 52; see
DX 149.
DX 4 ,r 34; DX 149; DX 14.H 68:10-
76:11; DX 14.A 128:8-130:7.
87.
. One-
known as
- or
1cator - was
ered if a cardholder claimed that a
A TM transaction was
DX 28 at No. 28; DX 86; DX 143;
DX 71 at-7488; DX 158 at-0209;
DX 14.AA 30:3-6.
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DX 85; DX 86; DX 101; DX 14.L
192:14-194:8; DX 14.H 52:3-53:8;
DX 14.Q 187:10-24; DX 4 ,r 30.
.A ,r 103;
DX 139 at -6913-14; DX 79 at -6222;
DX 86; DX 136; DX 14.Q 97:6-98:21,
115:9-117:24; DX 4 ,r,r 26-28; see
DX 11.B ,r 52.
DX 139 at -6913-14; DX 79 at -6222;
DX 63 at -9846, -9850; DX 156;
DX 183; DX 4 ,r,r 32-33; DX 14.Q 145:4-
147:6; DX 14.L 228:1 1-229:2; DX 14.D
125:23-127:14; see also SUF ,r 65.
93. From September 28, 2020 throu~h on
or aro
8; DX 14.E 18:9
17;
-20: 1.
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DX 14.Q 178:1-181:25; DX 62; DX 14.H
27:20-22; see DX 4 ,r,r 33, 35.
95. After the claim was closed, BANA
mailed the cardholder a letter informing
them of the claim decision and the
reasons for it, and told the cardholder
they could request reconsideration of the
claim if they disagreed.
DX 28 at No. 28; DX 52.
DX 177 at -5876; DX 14.E 247: 16-
248:14; see also 12 C.F.R. § 1005.ll(e).
97. The claim denial letter sent to EDD
cardholders whose claims triggered the
CFF said: "If you contact us by phone or
in writing, you may request that we
reopen your claim for further
consideration. You will be asked to give
us information, including any documents
you may have, to support your claim."
DX 52; see DX 14.E 276:14-277:19.
98. BANA recognized no fraud strategy
can be 100% effective at identifying only
fraudulent activity.
DX 14.L 274:4-20; DX 4 ,r 7; DX 10.D
240:18-25; see DX 14.Q 165:1-10;
DX 11.B ,r 59.
27
DX 109; DX 4 ,r 35; see also DX 95 at -
7099; DX 97 at -8437; DX 107.
28
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at -
15
DX 76 at -7224; DX 135 at -8995;
DX 14.1 246:13-249:14; DX 14.G
16
113:25-114:8.
17
105. The September 28. 2020 rescission
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of ermanent credits
DX 31 at No. 39; DX 76 at-7224.
107. Every member of the Credit
Rescission Class, by definition, has been
re-credited for the full amount of their
rescinded ermanent credit and also
ECF 494 at 42; DX 14.AB.1 ,r,r 32, 36,
65; DX 43.A at -2557; DX 7 if 6c; SUF
,r,r 106, 172.
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108. All Credit Rescission Class
members' whose accounts were
accidentall frozen on Se tember 28
2020 were
DX 92; see DX 27 at Nos. 2&6; SUF
,r,r 106-107.
DX 14.X 14:18-21, 72:18-24, 73:9-19,
81:16-83:17, 88:14-89:20, 91:7-92:25,
105:4-12, 107:23-111:6, 132:23-133:15,
138:14-23, 139:4-8; see id. 97:1-8, 130:8-
131:13, 198:7-9, 232:7-233:4.
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DX 14.V 17:20-18:6.
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V. THE ACCOUNT-FREEZE RESPONSE
10
115. When the CFF was i
DX 5 ,r,r 5-6; DX 1 ,r 30; DX 30.B at 17;
see also DX 14.S 159:15-18; DX 40.A
§ 2; DX 60 at -5435.
11
DX 14.S 226: 17-228:9; DX 5 ,r 5; DX 60
at -5435; see DX 14.AE 83:14-18; see
12
DX 30.B at 17.
13
117.
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DX 5 ,r 5; DX 14.H 27:5-23, 47:9-17;
DX 14.Q ,r 33; DX 14.S 227:19-228:9;
DX 11.B ,r 52; DX 149; DX 14.Y 55:2-
56: 13; SUF ,r 116; see also DX 60 at -
5435.
DX 60 at -5435; DX 91 at -7343; DX 5
,r 5.
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1-32.
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DX 14.B 52:2-53:1, 92:15-94:1; DX 14.S
132:20-133:3, 223:10-17; DX 30.B at 17;
DX 14.E 231:11-233:2; DX 14.L 226:21-
227:16; see DX 1 LA ,r 27.
122. During Fall 2020. BANA
determined that
DX 14.H 26:12-20; DX 14.S 227:19-
228:9; DX14.L 105:3-25, 269:18-270:3;
DX 129.
DX 59; DX 1 ,r 33; DX 14.B 18:11-19:5;
23
DX 52; DX 30.B at 18; see DX 150 at -
0173.
24
124. From December 3. 2020 throu2:h
25
March 17 2021
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DX 14.S 232:13-20, 234:4-6; DX 14.E
264:5-266:2; DX 30.B at 17; DX 81 at -
6931; DX 122; DX 82.
DX 43.A at-2556; DX 14.S 307:14-
308:8; DX 57; DX 5 ,r 6; DX 4 ,r 37.
128. Bellinnim! on March 18. 2021.
BANA
DX 14.S 30:25-31 :3, 268:2-4; DX 5 ,r 4.
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DX 5,r7.
136. EDD testified that it was EDD's
policy to convert UI benefits payments to
paper checks following an account
freeze, to the extent the claimant
remained eligible for benefits.
DX 14.AF 37: 15-23; see also
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DX 14.AB.1 ,r 83.
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esentative
epres
DX 66 at PDF p. 6; DX 33; see DX 14.S
244:4-8.
142. Account Freeze Class representative
Moon's EDD re aid account was
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DX 67 at PDF p. 14; DX 34; DX 35;
DX 36; DX 37; see DX 14.S 244:4-8.
143. All Account Freeze Class members
regained
•
paid
accounts
DX 14.AB.1 ,r 73; DX 7.A ,r 90; see DX
14.AB 131:6-13, 132:4-16, 133:12-134:1;
ECF 349 at 37; DX 27 at No. 4.
144. Upon request to EDD, Account
Freeze Class re resentative Koole
13
on re
to EDD, Accoun
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DX 14.AC 61 :8-20.
VI. THE COMPENSATION PAID TO CLASS MEMBERS
148. B
recons·
•
.
.
DX 126; DX 91; DX 184; DX 51 at-
5518; DX 14.E 232:8-233:2; DX 14.M
42: 18-43:3, 176: 16-177:2; DX 14.Y
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73:8-15, 302:17-303:9, 304:9-16.
-----1----------------11
2
3
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DX 31 at No. 39; DX 14.AG 101:22-
102:2; DX 14.M 232:12-22; DX 14.Y
61:1-20; DX 3 ,r 7.
DX 43.A at -2557-58; DX 3 ,r 7; see also
DX 31 at No. 39.
151. BANA entered into consent orders
with the OCC and CFPB in July 2022.
DX 41; DX 42; DX 3 ,r 3; see DX 14.P
57:20-58:20.
152. In connection with the consent
orders, BANA submitted a Remediation
Plan and Addenda
DX 43.A; DX 43.B; DX 43.C; DX 14.P
57:20-60:19; DX 3 ,r 4.
22
0,
23
24
25
26
27
28
DX 43.A at-2556; see DX 14.P 86:6-
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ATT'ORN£YSATLAW
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l
87:20, 90:19-91:1, 93:1-95:12; DX 3 ,r 6.
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-+---------------11
DX 43.A at -2556, -2563, -2566; see
DX 14.P 65:25-66:21, 77:7-25, 78:14-
79:6, 86:6-87:20, 90:19-91:1, 109:9-22;
DX 3 ,r,r 6, 9.
156. BANA's priority in desi~ning the
Remediation Plan was to
DX 43.A at-2558 n.16; see also DX 14.P
58:16-60:10, 66:4-21, 69:16-25, 77:7-25;
DX 14.D 239:25-242:7; DX 14.Z 172:2-
173:3; DX 3 ,r 12.
DX 43.A at -2556 n.6, -2556-64; DX 41
§ IX(2)(b )(i); DX 42 §VIII(95)(b ).
158. As referenced in SUF ,r,r 148-150,
prior to the implementation of the
Remediation Plan
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DX 31 at No. 39; DX 43.A at -2561, -
2563-64; DX 14.P 78: 14-79:20, 87: 13-
20, 90:19-91:1, 93:1-8; 298:1-18; DX 3
,r7.
DX 43.A at -2557, -2558 n.9 & n.14, -
2559, -2561, -2563-64; DX 14.P 285:23-
286:8; DX 3 ,r 8.
3.A at -2558; DX 14.P
23
317:2-20.
GooDWIN PROCTER LLP
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-
; see
.P
-19;DX3i111.
her 29, 2025, onlv -
DX 7 ,r 6g.
168. As defined, every Claim Denial
Class member received payment for their
claim s that tri ered CFF-1
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DX 7 i! 6b, d, e; DX 14.AG 122:18-
123:6; DX 14.AB 112:11-113:10, 122:9-
24; DX 43.A at -2557; ECF 494 at 96-97.
169. The Credit Rescission, Account
Freeze, Customer Service, and EMV
Chip Classes are defined as subsets of the
Claim Denial Class.
ECF 494 at 96-97; DX 14.AB.1 ,r,r 4, 88,
89, 97, 98.
170. As of September 29. 2025. nursuant
to the Remediation Plan
2 The calculations included in SUF ,r,r 170-171 are provided pursuant to FED. R. EVID.
1006. As explained in the Stango Declaration, the calculations are based on data
produced in BANA's Second Revised Second Supplemental Response to
Interrogatory Nos. 2, 4, 5, 6, 14 and 15 (Set 1) (DX 27), First Supplemental Response
to Interrogatory No. 21 (Set 3) (DX 28.A), and First Supplemental Response to
Interrogatory No. 46 (Set 7) (DX 31.B), and reflect calculations for the certified class
members, applying Plaintiffs' expert Regan's proposed methodology for
identification, as of September 29, 2025. BANA represents that the three exliibits to
BANA's Updated Responses (Exs. 1, 4, and 5) and the three exhibits to BANA's
Revised Supplemental Set 1, 3, and 7 Responses (Exs. 3, 6, and 16) contain source
data in voluminous excel documents that cannot be conveniently filed using the
Court's ECF system. See DX 27.A, DX 27.B, DX 27.C, DX 27.D, DX 28.A.1, DX
31.B.1. Copies ofBANA's Updated Responses and the accompanying exhibits have
been served and made availaole to Plaintiffs. Should the Court desire to review the
source data contained in BANA's Updated Responses, BANA will provide it to the
Court electronically in its preferred medium and at its convenience.
31
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DX 27 at Nos. 2&6; DX 27 .A; DX 7 ,r
6b; see DX 14.AB 122:17-123:8.
173. BANA's expert economist Victor
Stango opined that the measure of
"economic damages" or "the difference
between actual consumer outcomes and
consumer outcomes in a 'but-for'
hypothetical world absent the at-issue
conduct" does not include repaid
principal amounts when "a consumer has
not lost funds, but rather has lost access
to funds for some period of time."
Therefore, Stango opines that it would be
"economically illogical" to treat principal
claim amounts already received as actual
damages sustained as a result of CFF-1.
DX 7.A ,r,r 31-32.
174. Nearly
of the Claim Denial
Class members were paid-
-
of initiating their e~
DX 7.A ,r 64.
175. All
DX 14.S 294:23-302:25; DX 89;
DX 175; DX 104; DX 105.
176. All members of the Claim Denial,
Credit Rescission and Account Freeze
Classes
DX 43.A at -2557-28, -2560-64;
ECF 394 at 96-97; DX 7 ,r 6e.
177. All members of the Customer
Service and EMV Chip Classes are also
members of at least one of the Claim
Denial, Credit Rescission or Account
Freeze Classes, and s
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DX 43.A at-2560-61; DX 14.P 65:17-
66:25, 77:7-25, 79:21-81:14; DX 3 ,r 14;
DX 7.A ,r 67.
n.74;
at No. 39.
DX 43.A at -2557; DX 14.P 65:25-66:21,
77:7-25, 78:14-79:6, 109:9-22, 298:2-18;
DX 14.Z 172:2-173:3; DX 3 ,r 12;
ECF 350-9 ,r 11; ECF 350-8 ,r 11.
ECF 350-8 ,r,r 8-12, 14, 16-21; see also
DX5,r7.
182. With respect to error claims that
tri ered CFF-1, BANA determined to
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ECF 350-8 ifif 9, 14, 16-21; see also
DX 9.A ,r,r 51-54.
ECF 350-8 ,r,r 9, 14; DX 14.Z 215:4-13;
DX 9.A ,r,r 51-54.
VII. PLAINTIFFS' EXPERTS' OPINIONS
184. Plaintiffs offer damages opinions
from three expert witnesses: Greg Regan,
David Levine, and Chloe East.
See DX 14.AB.1; DX 14.R.1; DX 14.F.1;
DX 14.AB 12: 17-18:20; DX 14.R 153:3-
154:23; DX 14.F 23:14-24:8.
185. Plaintiffs' experts purport to
quantify the consequential harm suffered
by the Claim Denial, Credit Rescission,
and Account Freeze Classes by
estimating the cost of borrowing
substitute funds during the time class
members were without access to their
EDD benefits.
DX 14.AB.1 ,r,r 9, 13, 17, 40-51, 66-69,
78-86; DX 14.R.1 ,r,r 10-13, 17-18, 31-
32, 34, 44; DX 14.F.1 ,r,r 9-10, 14, 21,
28-31, 35; DX 14.AB 135:6-17, 136:18-
140:14, 159:10-161:24, 184:13-185:15,
225:16-227:8; DX 14.R 22:3-12, 23:17-
25:20, 41:16-42:6; DX 14.F 58:19-62:4,
126:14-129:2, 132:21-133:5, 135:9-
136:22, 172:18-177:15.
186. Regan does not offer an opinion on
the appropriate interest rate to estimate
class members' consequential damages,
but states that 10% is consistent with
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California law and that 20% would be
"reasonable" based on available credit
card interest rates during the class period
and the assumption that "the most likely
source of funds accessible to an impacted
cardholder would have been increased
credit card utilization."
DX 14.AB 12:17-18:20, 30:23-31:3,
56:15-57:1,165:17-167:5, 168:12-18; see
also DX 14.AB 144:18-145:2, 153:23-
154:16; DX 14.AB.1 ,r,r 46-51.
187. Levine opines that the appropriate
interest rate to estimate consequential
damages is 15. 9% based on the
assumption that "[ w ]hen UI payments
disappear, most UI recipients turn to
credit cards to cover those expenses."
DX 14.R.1 ,r,r 12, 45; see also DX 14.R
69:9-19, 135:7-136:20.
18 8. East opines that the appropriate
interest rate to estimate consequential
damages is 20.8% based on the
assumption that "most" class members
will have "tum[ ed] to borrowing" in
response to the temporary loss of funds.
DX 14.F.1 ,r,r 10b, l0f, 36; see also
DX 14.F 59:22-62:4, 133:16-134:14.
189. BANA's Interrogatory (ROG)
No. 14 to Cl
•
• tiffs
See, e.g., DX 15 at No. 14; DX 18 at
No. 14; DX 19 at No. 14.
190. In response to ROG No. 14. class
re resentative Moore said
27
DX 19 at No. 14.
28
191. In response to ROG
re resentative Moon said
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DX 23 at No. 14.
199. Regan, Levine, and East testified
that they do not know how many class
members needed to borrow money or pay
credit card interest, or if any did.
DX 14.AB 171:1-176:14; DX 14.R
71:13-16, 140:17-141:4; DX 14.F
141:12-143:21.
200. Regan, Levine, and East testified
that not all class members paid credit
card interest, or any interest, at the rates
they proposed.
DX 14.AB 160:22-161:24, 182:9-185:24,
214:23-215:5; DX 14.R 44:24-46:12,
140:16-141:3; DX 14.F 152:2-14,
176:15-177:15.
201. Regan, Levine, and East testified
that their damages methods did not
reflect the consequential harm suffered
by any specific class member or
members, including class representatives.
DX 14.AB 48:19-49:15, 167:7-17,
169:16-172:25, 190:9-21, 197:10-25;
DX 14.R 71:13-16, 74:8-75:25, 123:2-18;
140:17-141:4; DX 14.F 30:16-31:7,
59:17-62:4, 103:1-4, 109:13-110:7,
118:1-23.
202. Regan, Levine, and East testified
that their damages methods overstated
the consequential harm suffered by at
least some class members.
DX 14.AB 186:16-187:5, 223:21-224:16;
DX 14.R 35:21-43:1, 43:12-46:12;
DX 14.F 122:23-123:18, 124:14-24,
136:4-22.
203. Regan, Levine and East testified that
their damages methods likely understated
the consequential harm suffered by some
class members.
DX 14.AB 184:13-185:15; DX 14.R
94:17-97:2; DX 14.F 124:14-24.
204. Regan, Levine and East stated their
methods are a “conservative” estimate of
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class members’ consequential harm.
DX 14.AB.1 ¶¶ 9, 13, 17, 19, 49, 51, 69,
86, 93; DX 14.R.1¶¶ 11-14, 31-32, 43-
45, 53; DX 14.F.1 ¶¶ 10e, 37; DX 14.AB
143:8-20, 156:9-157:20, 227:9-20;
DX 14.R 19:19-20:1, 40:8-23, 42:14-20,
43:12-44:1, 48:16-49:21, 50:25-54:17,
72:14-73:20, 79:20-80:9, 85:8-25, 88:6-
25, 143:3-144:23; DX 14.F 59:2-24,
146:13-147:21, 162:18-164:3.
205. Regan, Levine, and East testified
that they did not review any record
evidence of consequential harm suffered
by class members.
DX 14.AB 48:7-49:7, 59:7-14, 139:25-
140:14, 171:1-172:2, 173:16-176:14,
180:4-181:15, 182:9-25, 190:9-21;
DX 14.R 30:4-32:6; DX 14.F 142:6-24,
150:25-153:8.
206. None of Plaintiffs’ experts offer any
proposed methodology to identify, assess,
calculate, or quantify emotional distress
or any other alleged consequential harms
for the classes beyond (1) alleged interest
rate charges, and (2) alleged lost
opportunity costs while members of the
Customer Service Class were on hold.
DX 14.AB 117:14-118:14; DX 14.F
59:2-11; see generally DX 14.AB.1;
DX 14.R.1; DX 14.F.1; DX 14.F 23:14-
24:8, 27:16-28:2, 29:10-15, 35:2-12,
41:1-7, 42:1-13; DX 14.R 153:3-154:23;
DX 14.AB 12:17-18:20, 30:23-31:3,
56:15-57:1.
207. The consequential harm damages
Regan calculated for the EMV Chip
Class overlap with the consequential
harm damages he calculated for the
Claim Denial and Credit Rescission
Classes because they are based on the
same fully reimbursed claims.
DX 14.AB.1 ¶¶ 40-51, 69, 99; DX 14.AB
303:2-13, 304:15-305:1.
208. Regan purports to quantify the
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amount that BANA allegedly profited by
providing EDD prepaid cards without
EMV chi s durin the EMV Chip Class
period as
DX 14.AB.1 ,r 101; see DX 55 at-4101.
209. Plaintiffs' expert witness Daniel
.
.
'
and compliant with EFTA.
DX 14.0.1 ,r,r 1, 10, 36-39; DX 14.0
17:11-21, 28:17-30:11.
VIII. BAN A'S CALL CENTERS
DX 14.J 278:17-20; DX 118; DX 116;
DX 128.
211. The change to a work-from-home
environment created
See DX 121; DX 124; DX 178.
212. In March 2020, BANA's call centers
for its EDD prepaid card pr.am were
staffed with approximately
full-time
equivalents (FT-
s handling
approximately
calls per month.
DX 2 ,r 7; see also DX 173; DX 174;
DX 25; DX 24.
213. Between March 2020 and
September 2020, call volumes for
BANA's re aid call centers
DX 2 ,r 7; see also DX 173; DX 174;
DX 25; DX 24.
214. By the end of 2020, BANA's call
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DX 2 ,r 12; DX 173; DX 174; DX 25; DX
24.
215. BANA's Claims Call Center handled
calls related to potentially unauthorized
transactions and billing errors.
DX 2 ,r 6.
216. In February 2020, the Claims Call
Center was staffed with
full-time
equivalents handling
calls
er month. B Octob
See DX 173.
217. The Claims Call Center was staffed
with■
FTEs by December 13, 2020.
See DX 173; see also DX 2 ,r 15.
218. In March 2020, the average speed to
answer (ASA) for BANA~
call
centers were at or below_
See DX 2 ,r 7; DX 173; DX 174; DX 25;
DX24.
219. By the end of December 2020, the
ASA for BANA's prepaid call centers,
includin~ms Call Center, were at
or below __
DX 173; see DX 2 ,r 21.
220.
28
DX 14.A 327:2-9; DX 14.J 82:5-83:8;
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DX 14.1204: 19-204:21; DX 14.Y 76: 17-
77:3; see DX 2 ,r 18; see also DX 148.
DX 14.X 158:14-25, 182:9-183:15.
223. Jenn Ehresman, who was not
responsible for or involved in staffing
decisions for the Claims Call Center
testified that
2-6
DX 14.A 327:2-9; see DX 14.J 82:5-
83:8; DX 14.1204:19-204:21.
225. Bill Golden, the executive
responsible for BANA' s prepaid call
centers between August 2020 and
November 2021 testified that
'
28
DX 179; DX 14.V 57:6-61:11.
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r
Service Class period.
DX 2 ,r 16; see DX 48; DX 49; see also
DX45; DX46.
228. Plaintiffs' expert Jav Minnucci
-
ed to calculate-
of costs avoid~
of the alleged understaffing of the
Claims Call Center.
See DX 14.U.1 ,r,r 108-113; see also
DX 13.A ,r,r 27, 36.
DX 6 ,r 7; see DX 14.U 137:21-138:4,
141:12-20, 396:20-401:18; DX 14.K
25:22-26: 12.
See DX 6 ,r 7.
231. Each member of the Customer
Service Class is also a member of at least
one of either the Claim Denial or Credit
Rescission Classes. Thus, by definition,
each member of the Customer Service
Class was able to reach BANA to report a
claim with the Claims Call Center.
See ECF 494 at 97; DX 14.AB 106:16-
107:7.
IX. MAGNETIC STRIPES AND EMV CHIPS
232. At the time BANA entered into the
EDD Agreement and throughout the
EMV Chi Class eriod, most re aid
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cards in the U.S. market did not contain
EMV chips, including prepaid cards
issued under public benefits programs.
DX 12.A ,r,r 42, 45; see also DX 147;
DX 141.
232A. In December 2015, the CFPB
advised that EMV chips were not
required in any type of card, and noted
the "cost" and slow "merchant adoption"
as factors that may be considered by
financial institutions in deciding whether
to include chips.
RJN 6 at 270-73.
233. Federal Reserve payment studies
show that between 2019 and 2020, 65%-
74% of in-person prepaid card
transactions were completed without an
EMV chip.
RJN 10; DX 12.A ,r,r 45-46.
DX 14.B 188:17-189:21; DX 14.S 65:15-
20, 78: 13-22; DX 94 at -7095; DX 26 at
No. 24; see DX 39 at -2850.
236.
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DX 74 at-4993; DX 14.S 65:4-7, 114:12-
14.
241. EMV chip technology does not
prevent all fraudulent transactions.
DX 123; DX 14.S 56:20-24; DX 5 ,r,r 8-
11; DX 12.A ,r,r 73, 93-100; DX 181.
DX 123 at -7048; DX 73; DX 12.A
,r,r 94-96, 105-07, 116-17; DX 14.S
55:14-56:9, 113:1-21; DX 5 ,r 8.
243. EMV chin technolo2:v does not
DX 12.A ,r,r 56, 83, 85, 89-90, 104, 117;
DX 5 ,r 9; see also RJN 17; RJN 18; RJN
20.
244. "Shimming" machines allow
criminals to read identifying data,
including card numbers, from EMV chips
and produce counterfeit cards.
DX 12.A ,r,r 56, 83, 85, 89-90, 104, 117;
see also RJN 17; RJN 18; RJN 20.
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245. EMV chin technolo2:v does not
DX 113; DX 114; DX 12.A ,r,r 16, 65, 74,
76-81; DX 14.S 55:14-56:9, 59:1-5;
DX 14.Q 157:7-158:15; DX 5 ,r 9.
DX 12.A ,r,r 76-81, 84; DX 14.S 51:3-19,
55:8-57:23; DX 5 ,r 10; DX 113 at -4188;
DX 114.
X. PLAINTIFFS' REMAINING ALLEGATIONS
250. BANA required its nrenaid card
vendors to adhere to
DX 44; DX47.
250A. From March 2020 to October
2020, various state and local offices and
courts, which were responsible for
handlin state and local back round
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Dated: October 17, 2025
Respectfully submitted,
By: Isl James W. McGarry
JAMES W. MCGARRY (pro hac vice)
JMcGar_ry(a),f!oodwinlaw. com
GOODWJN1>ROCTER LLP
100 Northern Avenue
Boston, MA 02210
Tel.: +1 617 570 1000
Fax: +1 617 523 1231
SABRINA M. ROSE-SMITH (pro hac vice)
SRoseSmith(a),f!oodwin law. com
MA TTHEwt'. RIFFEE (pro hac vice)
MRiffee(a),f!oodwinlaw. com
KEITH tEVENBERG (pro hac vice)
KLevenberf!{a),f!oodwinlaw. com
GOODW{N1)ROCTER LLP
1900N St. NW
Washington, DC 20036
Tel:+ 1 202 346 4000
Fax: + 1 202 346 4444
LAURA G. BRYS (SBN 242100)
LBry_s(a),f!oodwinlaw. com
GOODWIN PROCTER LLP
601 S Figueroa St., Suite 4100
46
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GOODWIN PROCTER LLP
ATTORNEYS AT LAW
Los Angeles, CA 90017
Tel.: +1 213 426 2500
Fax: +1 617 346 4444
VALERIE A. HAGGANS (pro hac vice)
VHaggans@goodwinlaw.com
LINDSAY E. HOYLE (pro hac vice)
LHoyle@goodwinlaw.com
GOODWIN PROCTER LLP
620 Eighth Avenue
New York, NY 10118
Tel.: +1 212 813-8800
Fax: +1 212 355-3333
YVONNE W. CHAN (pro hac vice)
YChan@jonesday.com
JONES DAY
100 High Street
Boston, MA 02110
Tel.: +1 617 960 3939
Fax: +1 617 449 6999
JANICE P. BROWN (SBN 114433)
jbrown@myersnave.com
MATTHEW B. NAZARETH (SBN 278405)
mnazareth@myersnave.com
MEYERS NAVE
600 B Street, Suite 1650
San Diego, CA 92101
Attorneys for Defendant
BANK OF AMERICA, N.A.
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