372 F.Supp. 1398.
In re STA-POWER INDUSTRIES
SECURITIES AND ANTITRUST
LITIGATION.
No. 151.
Judicial Panel on Multidistrict Litigation.
March 27, 1974.
*1398 OPINION AND ORDER
Before ALFRED P. MURRAH, Chairman,
and JOHN MINOR WISDOM, EDWARD
WEINFELD, EDWIN A. ROBSON,
WILLIAM H. BECKER, JOSEPH S.
LORD, III, [FN*] and STANLEY A.
WEIGEL, Judges of the Panel.
FN* Although Judge Lord was
unable to attend the Panel hearing,
he has, with the consent of all
parties, participated in this
decision.
*1399 PER CURIAM.
This litigation consists of four actions in
four different districts against Sta-Power
Industries, Inc. and certain closely related
companies and individuals. [FN1]
Defendant Sta-Power moves the Panel for
an order transferring all actions to the
Northern District of California for
coordinated or consolidated pretrial
proceedings pursuant to 28 U.S.C.
1407. All parties except plaintiffs in the
Colorado action favor transfer of their
respective actions. We find that all of
these actions involve common questions
of fact and that transfer to the Northern
District of California will best serve the
convenience of the parties and witnesses
and promote the just and efficient conduct
of the litigation.
FN1. Two additional actions were
formerly pending in the District of
Minnesota, Thomas Edward Bray,
et al. v. Sta-Power Industries, Inc.,
Civil Action No. 3-73-148-Civil, and
John Penterman, et al. v. Sta-Power Industries, Inc., et al., Civil
Action No. 3-73-136-Civil. Shortly
before the Panel hearing, the
Minnesota district court entered an
order remanding the Bray action to
state court. And soon after the
Panel hearing, the Minnesota
district court entered an order
dismissing the Penterman action.
Plaintiffs in these actions allege that
defendants' activities concerning Sta-
Power's multilevel sales and distribution
system were fraudulent and in violation of
the federal securities and antitrust laws.
In addition, plaintiffs in three of the actions
purport to represent a class comprised of
distributors of Sta-Power products.
[1] Because all actions in this litigation
clearly raise common factual issues,
transfer for coordinated or consolidated
pretrial proceedings is necessary in order
to avoid duplication of discovery.
Transfer will also eliminate the possibility
of inconsistent class determinations. See,
e.g., In re Holiday Magic Securities and
Antitrust Litigation, 368 F.Supp. 806
(Jud.Pan.Mult.Lit.1973) and In re Glenn
W. Turner Enterprises Litigation, 355
F.Supp. 1402 (Jud.Pan.Mult.Lit.1973).
[2] In opposing transfer, plaintiffs in the
Colorado action argue that few common
questions of fact exist between their
action and the other actions in this
litigation, that transfer will be inconvenient
to them and their witnesses and that the
just and efficient conduct of their action
will be best promoted in Colorado. We
are not persuaded by these arguments
and find that the criteria for transfer of the
Colorado action under Section 1407 are
clearly satisfied. This action raises many
factual issues concerning alleged
violations of the federal securities laws
identical to those raised in the other
actions in this litigation. And in weighing
the convenience of the parties and
attempting to promote the just and
efficient conduct of the litigation, we are
compelled to consider the litigation as a
whole. In so doing, we find that the
purposes of Section 1407 will be
advanced by transferring all actions in this
litigation to a single district for coordinated
or consolidated pretrial proceedings.
Although the District of Arizona has been
suggested as the transferee district for
this litigation, we find that the Northern
District of California is the most
appropriate forum. Sta-Power's home
office is located in that district and the
vast majority of documents and
anticipated witnesses are located there.
In addition, there is an action pending in
the Northern District of California brought
by the Securities and Exchange
Commission against Sta-Power and
Holiday Magic, Inc., another company
engaged in multilevel marketing, which
involves factual issues similar to the ones
involved here. And Judge Lloyd H. Burke,
who has been assigned to the SEC
action, has had an opportunity to become
thoroughly familiar with those issues.
[3] Plaintiffs in the Colorado action seek
an order from the Panel dismissing the
motion to transfer to the extent that it
affects their action on the ground that they
were not included on the original *1400
service list accompanying the motion to
transfer. It is clear, however, that
plaintiffs were not prejudiced in any way.
Plaintiffs concede that they received
notice of the Panel proceedings more than
three weeks prior to the hearing. And, in
fact, they filed a brief opposing transfer of
their action under Section 1407 and also
appeared at the hearing and orally argued
their case. We find that counsel for
plaintiffs have had sufficient time to
prepare their clients' case and have ably
represented them in this matter. Thus,
we must deny their request.
It is therefore ordered that all actions
listed on the appended Schedule A
pending in districts other than the
Northern District of California be, and the
same hereby are, transferred to the
Northern District of California and, with
the consent of that court, assigned to the
Honorable Lloyd H. Burke for coordinated
or consolidated pretrial proceedings
pursuant to 28 U.S.C. 1407 with the
action already pending in that district and
listed on Schedule A.
SCHEDULE A
----------
Northern District of California
-------------------------------
Julio R. Sosa, et al. v. Sta-Power Civil Action
Industries, Inc., et al. No. C-72-2121-OJC
District of Arizona
-------------------
Thurman Linker, etc. v. Sta-Power, et al. Civil Action
No. 72-428-Phx-WPC
Eastern District of Pennsylvania
--------------------------------
Joel R. Gravitz v. Sta-Power, Industries, Civil Action
Inc., et al. No. 73-330
District of Colorado
--------------------
Kent Carpenter, et al. v. Sta-Power Civil Action
Industries, Inc., et al. No. C-5265
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