United States District Court, N.D. California
City of Miami General Employees' & Sanitation Employees' Retirement Trust, on behalf of itself and all others similarly situated, Plaintiff,
RH, Inc., Gary Friedman, Karen Boone, Defendants. Peter J. Errichiello, Jr., Individually and on Behalf of All Others Similarly Situated, Plaintiff,
RH, Inc., Gary Friedman, Karen Boone, Defendants.
ORDER GRANTING PUBLIC SCHOOL TEACHERS' PENSION
& RETIREMENT FUND OF CHICAGO AND ARKANSAS TEACHER
RETIREMENT SYSTEM APPOINTMENT AS LEAD PLAINTIFF, APPROVAL OF
SELECTION OF COUNSEL AND CONSOLIDATION OF RELATED
GONZALEZ ROGERS UNITED STATES DISTRICT COURT JUDGE
before the Court is the motion of Plaintiffs Public School
Teachers Pension & Retirement Fund of Chicago and
Arkansas Teacher Retirement System (“Chicago and
Arkansas Teachers”) to: (1) appoint Chicago and
Arkansas Teachers as Lead Plaintiff on behalf of all persons
who purchased the common stock of RH, Inc. (“RH”)
between March 26, 2015 and June 8, 2016; (2) approve
selection of Bernstein Litowitz Berger & Grossmann LLP as
Lead Counsel for the Class, pursuant to Section 21D(a)(3)(B)
of the Securities Exchange Act of 1934, 15 U.S.C. §
78u-4(a)(3)(B) (the “Exchange Act”), as amended
by the Private Securities Litigation Reform Act of 1995 (the
“PSLRA”), and Rule 42 of the Federal Rules of
Civil Procedure; and (3) consolidate related case
Errichiello v. RH, Inc. Gary Friedman, Karen Boone,
No. 3:17-cv-YGR-01425 (N.D.Cal.) with City of Miami
General Employees' & Sanitation Employees'
Retirement Trust v. RH, Inc., Gary Friedman, Karen
Boone, No. 4:17-cv-00554-YGR (N.D.Cal.). (Dkt. No. 11,
“Motion”). The Motion was filed on April 4, 2017.
The Hulaj family filed a competing motion on the same day
seeking to (1) appoint Steven Hulaj, Henrietta Hulaj, Blair
Hulaj, and Kristen Hulaj as Lead Plaintiffs; (2) approve
selection of Pomerantz LLP as Lead Counsel; and (3)
consolidate the above-captioned actions. (Dkt. No. 15,
Competing Motion). No party opposes the consolidation.
upon the matters submitted in connection with the motion: (1)
Chicago and Arkansas Teachers are presumptively most adequate
lead plaintiffs, as defined by the PSLRA, due to their
alleged losses of approximately $3.6 million, suffered in
connection with their purchases of RH common stock, as
alleged in the action; and (2) Chicago and Arkansas Teachers
have made a prima facie showing sufficient to
satisfy the requirements of Rule 23(a) of the Federal Rules
of Civil Procedure, as their claims as alleged are typical of
other putative class members' claims, and the record
before the Court indicates that they will fairly and
adequately represent the putative class.
PSLRA further vests authority in the Lead Plaintiffs to
select and retain lead counsel, subject to the approval of
the Court. 15 U.S.C. § 78u-4(a)(3)(B)(v). Here, Chicago
and Arkansas Teachers have selected Bernstein Litowitz Berger
& Grossmann LLP as Lead Counsel for the Class, and that
firm appears to be experienced, well-qualified counsel.
carefully considered the papers submitted and the pleadings
in this action, and for the reasons set forth below, the
Court Orders as follows:
Motion is Granted.
above-captioned actions are consolidated for all purposes
(the “Consolidated Action”). This Order (the
“Order”) shall apply to the Consolidated Action
and to each case that relates to the same subject matter that
is subsequently filed in this Court or is transferred to this
Court, and is subsequently consolidated with the Consolidated
Master File is established for the Consolidated Action. The
Master File number shall be 4:17-cv-00554. All filings in the
Consolidated Action shall be made solely within the Master
File. Docket 17-cv-01425 shall be administratively closed.
Every pleading in the Consolidated Action shall have the
RH, INC. SECURITIES LITIGATION : Case No.
the extent future cases are filed that may be related, the
parties shall follow the procedures outlined in Civil Local
Rule 3-12. The parties may also file stipulations or motions
to consolidate if appropriate.
Chicago and Arkansas Teachers is appointed to serve as Lead
Plaintiff in the Consolidated Action pursuant to 15 U.S.C.
§ 78u-4(a)(3)(B). See In re Diamond Foods, Inc.,
Sec. Litig., 281 F.R.D. 405, 410 (N.D. Cal. 2012).
Chicago and Arkansas Teachers selection of Bernstein Litowitz
Berger & Grossmann LLP as Lead Counsel for the Class is
approved pursuant to 15 U.S.C. § 78u-4(a)(3)(B)(v). Lead
Counsel shall have the authority to speak for all Plaintiffs
and Class members in all matters regarding the litigation,
including, but not limited to, pretrial proceedings, motion
practice, trial, and settlement. Lead Counsel shall make all
work assignments in such a manner as to facilitate the
orderly and efficient prosecution ...