375 F.Supp. 1403 (Jud.Pan.Mult.Lit. 1974), 161, In re U.S. Financial Securities Litigation
|Citation:||375 F.Supp. 1403|
|Party Name:||In re U.S. FINANCIAL SECURITIES LITIGATION.|
|Case Date:||June 06, 1974|
|Court:||United States Judicial Panel on Multidistrict Litigation|
Before ALFRED P. MURRAH,1 Chairman, and JOHN MINOR WISDOM, EDWARD WEINFELD, EDWIN A. ROBSON, WILLIAM H. BECKER, JOSEPH S. LORD, III, and STANLEY A. WEIGEL, Judges of the Panel.
OPINION AND ORDER
This litigation concerns the affairs of U.S. Financial, Inc., a multifaceted real estate company, and consists of ten private actions in five different districts. Plaintiffs allege that U.S. Financial and certain closely related companies and individuals violated the federal securities laws by furnishing false and misleading information about U.S. Financial to the investing public. Many of the actions contain requests for class designations on behalf of persons who
purchased various types of U.S. Financial securities.
Certain defendants move the Panel for an order transferring all actions to the Southern District of New York for coordinated or consolidated pretrial proceedings pursuant to 28 U.S.C. § 1407. Another defendant has countermoved for an order transferring these actions to the Southern District of California. All responding parties favor transfer of this litigation and the only disputed issue is the choice of the appropriate transferee forum. We find that these actions involve common questions of fact and that their transfer under Section 1407 to the Southern District of California will best serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.
As is often the case in multidistrict securities litigation, the prevalence of common factual issues and similar class allegations necessitates transfer of all actions to a single district for coordinated or consolidated pretrial proceedings under Section 1407 in order to prevent duplication of discovery and eliminate the possibility of inconsistent or overlapping class determinations. See, e.g., In re Clinton Oil Company Securities Litigation, 368 F.Supp. 813 (Jud.Pan.Mult.Lit.1973). We agree with the parties that this litigation falls within that norm.
The Southern District of California, rather than the Southern District of New York, is clearly the most appropriate transferee forum for this litigation. U.S. Financial's corporate headquarters are located in the Southern District...
To continue readingFREE SIGN UP