Exhibit I — In re Bank of America California Unemployment Benefits Litigation (Dkt. 623-11, S.D. Cal. No. 3:21-md-02992)

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U.S. District Court for the Southern District of California · No. 3:21-md-02992-GPC-MSB · Doc. 623-11 · 2026-01-08 · Docket on CourtListener

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EXHIBIT I
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Case 3:21-md-02992-GPC-MSB     Document 623-11     Filed 01/08/26     PageID.45019 
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HIGHLY CONFIDENTIAL
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            UNITED STATES DISTRICT COURT
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           SOUTHERN DISTRICT OF CALIFORNIA
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                 SAN DIEGO DIVISION
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IN RE BANK OF AMERICA           ) Case No.
CALIFORNIA UNEMPLOYMENT         ) 21-MD-02992 LAB-MSB
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BENEFITS LITIGATION             )
_______________________________ )
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                                )
                                )
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                                )
This Document Relates to        )
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All Actions                     )
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                                )
_______________________________
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                 HIGHLY CONFIDENTIAL
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     VIDEO-RECORDED DEPOSITION OF JANE CLONINGER
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              Wednesday, June 11, 2025
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              San Francisco, California
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Stenographically Reported By:
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Hanna Kim, CLR, CSR No. 13083
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Job No. 7413877
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     A.   Yes.
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     Q.   Okay.  During that time at Edgar, Dunn and
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Company, what was -- who were your clients?  Not --
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not the names, but, just generally, what kinds of
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companies were they?                                   09:47:04
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     A.   I did a lot of work for the different
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payment brands.  I did work for some processors,
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some startups, some -- some of the acquirers.
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          I -- I did work in the U.S.  I did work in
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Europe and in Australia as well.                       09:47:29
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     Q.   Okay.  Were you based in San Francisco the
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entire time?
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     A.   Yes.
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     Q.   Okay.  And did you -- during your time at
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Edgar, Dunn and Company, did you do any work for any   09:47:37
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card issuers?
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     A.   I did.
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     Q.   You did?
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     A.   Mm-hmm.
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     Q.   And just try to answer with a "yes" or       09:47:45
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"no."
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     A.   I'm sorry.
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          I -- yes.
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     Q.   How many card issuers did you do work for,
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approximately?                                         09:47:55
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portfolio, and a consumer card portfolio.
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          And we helped them develop their business
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cases for those three portfolios.
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          And I worked -- had lots of conversations
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with issuers because I did a lot of industry           09:49:28
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seminars and speeches.
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          I don't -- that's the one that I remember
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doing specifically a bank -- a ca- -- business case
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for, but I think all the others I did work for the
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brands, who then went out and talked to their          09:49:46
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cli- -- clients.
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          In Canada, I worked directly with all of
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the banks in Canada, all of the banks, all of the
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acquirers, all of the ATM operators.
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          The -- the -- the brand that I was working   09:50:04
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for facilitated group meetings with all of them, and
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we had -- all were very, very much involved in the
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development of the business case in Canada.
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     Q.   Okay.
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          Okay.  So then that bank you mentioned       09:50:15
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where you helped them do the business case for three
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portfolios, remind me, what were the three again?
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     A.   Their consumer card portfolio, commercial
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card portfolio, and government portfolio.
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     Q.   What -- approximately when did you do that   09:50:28
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     A.   Yes.
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     Q.   Within each portfolio, did you do a
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separate business case for different products within
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the portfolio?
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     A.   No.                                          09:51:48
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     Q.   Okay.  What is a "business case," as you
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use the term?
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     A.   A business case is an analysis that looks
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at the costs of a new project, whatever those may
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be, and the benefits of doing it and calculates the    09:52:08
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net incremental difference between the current
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process and whatever this new one will be and
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calculates a net present value and breakeven.
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          And it determ- -- makes a determination
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whether it makes economic sense to move forward.       09:52:31
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          Often, especially with EMV, it also looked
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at intangibles, things that couldn't be quantified.
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     Q.   What types of intangibles?
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     A.   Things like the -- the welfare of the
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consumer, what's best in -- you know, of the -- the    09:52:51
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co- -- the user experience, security, safety, the
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payments, the -- the risk to the payment system of
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not having something that is secure, the trust that
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has to be there for payment cards.
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     Q.   Okay.                                        09:53:11
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          So you mentioned a cost benefit analysis.
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     A.   Mm-hmm.
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     Q.   What were the types of costs that went
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into this analysis?
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     A.   Well, the primary cost for an EMV business   09:53:18
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case is the cost of the new cards.  So the -- the
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chips especially are the primary element.
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          There are also costs associated with
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things like updating consumer communications,
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updating systems.  You have to update the              09:53:40
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authorization system, the customer service system, a
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number of system upgrades.
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          There are -- are tweaks.  Modifications
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are needed to set different pa- -- the parameters
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differently.                                           09:53:54
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          And then updating and training the
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customer service reps that are dealing -- that both
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their system and their card management system has to
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be upgraded.
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          So there's a -- a number of -- of changes    09:54:06
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throughout the operational processes that have to be
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made.
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     Q.   So when you were doing these business
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cases, the information about all of those costs that
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you mentioned, were you the one determining what       09:54:19
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losses.  Is -- are those some of the -- sorry, some
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of the benefits -- let me start over.
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          We talked about the costs.  So let's talk
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about the benefits.  Are -- is the avoidance of
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fraud loss one of the benefits that goes into your     10:15:37
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business case?
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     A.   It's the primary benefit.
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     Q.   Okay.  Where does that information come
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from when you're doing a business case?
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     A.   Well, first, we have to look at historical   10:15:45
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fraud losses.  And we're only interested in
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card-present counterfeit fraud because it's the only
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fraud that EMV addresses.  So we would look at
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historical, and then look at -- and work with the
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clients to develop the fraud curves that they would    10:16:06
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expect on, kind of, a do nothing scenario.  So stay
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with magstripe, this is what we expect.
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          And then we would look -- use that as a
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baseline and say based on what we know from other
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markets, as they converted, this is what happened to   10:16:24
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fraud.  And it started declining at -- at a certain
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amount of intersection of -- of cards and merchants.
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And so, then we would develop various scenarios
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based on historical markets on data and vet those
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with the client.                                       10:16:47
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               CERTIFICATE OF REPORTER
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          I, Hanna Kim, a Certified Shorthand
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Reporter, do hereby certify:
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          That prior to being examined, the witness
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in the foregoing proceedings was by me duly sworn to
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testify to the truth, the whole truth, and nothing
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but the truth;
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          That said proceedings were taken before me
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at the time and place therein set forth and were
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taken down by me in shorthand and thereafter
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transcribed into typewriting under my direction and
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supervision;
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          I further certify that I am neither
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counsel for, nor related to, any party to said
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proceedings, not in anywise interested in the
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outcome thereof.
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          Further, that if the foregoing pertains to
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the original transcript of a deposition in a federal
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case, before completion of the proceedings, review
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of the transcript [X] was [ ] was not requested.
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          In witness whereof, I have hereunto
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subscribed my name.
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Dated:  June 25, 2025.
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              <%6538,Signature%>
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             Hanna Kim CLR, CSR No. 13083
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1
In re Bank of America California Unemployment Benefits Litigation 
Case No. 3:21-MD-02992-GPC-MSB 
Errata Sheet for June 11, 2025 Deposition of Jane Cloninger 
 
Page 
# 
Line 
# 
Change From: 
Change To: 
Reason: 
14 
13-
23 
“That case was about – I was 
asked to help determine how 
many of the – it was a --- 
with a rights service and 
how many of the cards on 
file for – that they wanted to 
use for settlement purposes 
would likely still be valid. 
So it – they were using – I 
had to go through 
benchmarks and industry 
data to say, you know, about 
if they’re – they typically – 
cards typically expire in – at 
a certain rate; and, therefore, 
X amount would still be – 
likely be valid.” 
“That case was about a ride 
share company.  I was asked 
to help determine how many 
of the  cards on file with the 
ride service would likely still 
be valid and could be used 
for settlement purposes.   
 
I had to go through industry 
benchmarks and industry 
data to find the average life 
of a typical payment card 
and apply that data to 
determine the number of 
cards in the ride share 
company’s files that would 
likely still be valid.” 
Transcription error 
/Clarification 
16 
14 
“I was the client -- account 
lead for – for” 
“I was the client account lead 
for” 
Transcription error 
16 
18 
“axillary” 
“auxiliary” 
Transcription error 
17 
5 
“Edgar, Dunn and 
Company?” 
“Edgar, Dunn and 
Company.” 
Transcription error 
26 
16-
20 
“Probably from about 2014 
to – not – 2004 – no, getting 
my dates wrong. 2012 – no, 
right – no, I was right. 2000 
– 2007.” 
“Probably from about 2014 
to – not – 2004 – no, getting 
my dates wrong. 2012 – no, 
right – no, I was right. 2004 
– 2017.”  
Transcription error 
/Clarification 
27 
15 
“than helping” 
“then helping” 
Transcription error 
41 
17 
“provided” 
“prevented” 
Transcription error 
58 
10 
“my” 
“plaintiffs’” 
Clarification 
58 
21 
“share” 
“sure” 
Transcription error 
89 
7-11 
“It’s not reasonable for any 
participant in the payments 
industry to fail to migrate to 
a higher standard of security 
when – and the way – like 
the fact that fraud migrates 
throughout the industry and 
as other part –” 
It's not reasonable for any 
participant in the payments 
industry to fail to migrate to 
a higher standard of security 
when they know that other 
participants in the industry 
have adopted the newer 
standards and the bank has 
begun experiencing the 
Clarification 
Docusign Envelope ID: AB64F769-BE63-45E7-942A-8053C98C8B2B
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2
Page 
# 
Line 
# 
Change From: 
Change To: 
Reason: 
expected increases in their 
fraud losses.  Fraud migrates 
throughout the industry as 
other parts –” 
92 
2 
“incremental card in- -- 
interest” 
“incremental card in- -- 
issuance” 
Transcription error 
97 
10-
11 
“has already issues, huge 
amounts” 
“has already issued huge 
amounts” 
Transcription error 
114 
13-
14 
“I – I thought about it, but I 
don’t. It doesn’t – I don’t 
believe” 
“I – I thought about it, but I 
don’t -- it doesn’t – I don’t 
believe” 
Transcription error 
114 
17-
18 
“And you can’t isolate one 
industry”  
“And you can’t isolate one 
subsegment of the industry” 
Clarification 
120 
2 
“My attorneys.” 
“Plaintiffs’ attorneys.” 
Clarification 
136 
7 
“want ever EMV chips or 
something to that language” 
“ever want EMV chips or 
something to that effect” 
Clarification 
145 
9 
“EMV charge” 
“EMV cards” 
Transcription error 
153 
19 
“the banks said” 
“the bank said” 
Transcription error 
155 
20 
“card person counterfeit” 
“card present counterfeit” 
Transcription error 
173 
1 
“spring and” 
“spring or” 
Transcription error 
173 
21 
“do” 
“to” 
Transcription error 
184 
18 
“as last as” 
“as late as” 
Transcription error 
202 
20 
“No.” 
“No, I don’t agree with that.” Clarification 
233 
17 
“some sales” 
“to the merchant” 
Transcription error 
/Clarification 
235 
5 
“the security of it.” 
“the security of their data.” 
Clarification 
242 
13 
“It could be used.” 
“It could be used if the Bank 
allows it to be.” 
Clarification 
242 
18 
“approve no not” 
“approve or not” 
Transcription error 
246 
11 
“It's my understanding that 
they can apply” 
“It’s my understanding that 
fallback rules, or similar 
limitations imposed by the 
issuer, can apply” 
Clarification 
252 
23 
“the commercial program” 
“the consumer program” 
Clarification/ 
Transcription error 
257 
18 
“merchants were fine,” 
“merchants were fined,” 
Transcription error 
270 
20-
21 
“in kind gaming and 
ordering food and ordering 
cars” 
“online gaming and ordering 
food and ordering clothes” 
Transcription error 
284 
7 
“Correct.” 
“If those rules and no other 
rules were put in place, that’s 
correct.” 
Clarification 
Docusign Envelope ID: AB64F769-BE63-45E7-942A-8053C98C8B2B
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3
Page 
# 
Line 
# 
Change From: 
Change To: 
Reason: 
290 
19-
20 
“transactions, the card 
present – the reported not – 
unauthorized [verbatim] card 
in my possession 
transactions.” 
“transactions, the reported 
card-present unauthorized 
–card is in my possession – 
transactions.” 
Transcription error 
/Clarification 
295 
9 
“not a significant part of 
other” 
“not a significant part of 
unauthorized transaction 
fraud” 
Clarification 
297 
25 
“It – it would – it would be 
suspicious” 
“I – I would – I would be 
suspicious whether it 
resulted from skimming.” 
Clarification 
298 
17 
“suspicious transaction, 
yes.” 
“transaction that may not 
have resulted from 
skimming, yes.” 
Clarification 
 
 
In accordance with the Federal Rules of Civil Procedure, I have read the entire transcript 
of my testimony. I have listed my changes on the above errata sheet and the reasons for making 
them. I request that these changes be entered as part of the record of my testimony, and I request 
and authorize that this errata sheet be appended to the transcript of my testimony and be 
incorporated therein. 
 
 
 
 
 
 
 
 
 
           ____________________ 
 
           Jane Cloninger 
 
           August 4, 2025 
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