Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_15-cv-01074/USCOURTS-cand-3_15-cv-01074-3/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 28:1332 Diversity-Account Receivable

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UNITED STATES JUDICIAL PANEL

on

MULTIDISTRICT LITIGATION

IN RE: LUMBER LIQUIDATORS CHINESE-MANUFACTURED

FLOORING PRODUCTS MARKETING, SALES PRACTICES

AND PRODUCTS LIABILITY LITIGATION

TRANSFER ORDER

POLE

JiH 1 2 2085

CL£RICU.S. DISTRICT COURT

ALQ^ORIA. VIRGINIA

MDL No. 2627

Before the Panel;' Plaintiffs inan action in the Northern District ofCalifornia (Conte) move under

28 U.S.C. § 1407 to centralize pretrial proceedings in the Northern District ofCalifornia. These cases

concern the sale and marketing ofChinese-manufactured laminate flooring sold by defendant Lumber

Liquidators. Despite being marketed as compliant with regulations ofthe California Air Resources Board

and other applicable regulations, plaintiffs allege that their laminate flooring emits illegal and unsafe levels

offormaldehyde, a known carcinogen. Plaintiffs' motion included the ten actions listed on Schedule A

and pending in seven districts. Since plaintiffs filed this motion, the parties have notified the Panel of 113

potentiallyrelated actions filed in various districts.'

No party opposes centralization, and the parties have proposed a wide variety ofpotential transferee

districts. Defendants Lumber Liquidators, Inc., Lumber Liquidators Holdings, Inc., Lumber Liquidators

Services, LLC, and Lumber Liquidators Leasing, LLC (collectively Lumber Liquidators) suggest

centralization in the Eastern District of Virginia. Numerous plaintiffs have responded to the motion,

variously suggesting centralization in the following districts: the Central, Eastem and Northern Districts

of California, the Northern and Southern Districts of Florida, the Eastem District of Louisiana, the

Southern District ofOhio, the District of South Carolina, the Southern District ofTexas and the Eastem

District of Virginia.

After considering the argument of counsel, we find that the actions in this litigation involve

common questions of fact, and that centralization in the Eastem District of Virginia will serve the

convenience ofthe parties and witnesses and promote the just and efficient conduct ofthe litigation. All

actions involve common factual questions regarding whether Lumber Liquidators falsely represented that

its Chinese-manufactured laminate flooring complied with Califomia Air Resources Board standards and

other legal requirements governing the emissions of formaldehyde. Centralization will eliminate

*Judge MarjorieO. Rendell did not participatein the decision ofthis matter. Additionally, certain

Panel members who could be members ofthe putative classes in this docket have renounced their

participation in these classes and have participated in the decision.

' Theseand anyother relatedactions arepotentialtag-alongactions. See Panel Rules 1.1 (h), 7.1 and

7.2.

Case 3:15-cv-01074-JST Document 23 Filed 06/18/15 Page 1 of 3
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duplicative discovery, avoid inconsistent pretrial rulings (including on issues of class certification and

Daubert motion practice), and conserve the resources ofthe parties, their counsel and the judiciary.

While this litigationcould be centralized in any number ofthe suggested transferee districts, we

are persuaded that the Eastern District of Virginia is an appropriate transferee district for this litigation.

LumberLiquidators is basedin this districtinToano,Virginia,and relevantdocumentsand witnesseswill

likely be found there. At oral argument and in their briefs, some plaintiffssupporting transfer to other

districts suggested that this MDLwas not suited to the speed ofthe district's "Rocket Docket." When

pressed atoralargument, however, plaintiffs failed toarticulate preciselyhowproceeding atanexpeditious

pacewould prejudice theparties. Centralization intheEastern District of Virginia allows us toassign this

litigation to a district to which we have transferred relatively few MDLs. Further, centralization allows

for the coordination ofthis litigation with a securities action against Lumber Liquidators that was filed in

the Eastern District of Virginia in November 2013, which has grown to include allegations concerning

formaldehyde emissions from Chinese-made laminate flooring. SeeIn re: LumberLiquidatorsHoldings,

Inc. Securities Litigation, E.D. Virginia, C.A. No. 4:13-cv-l57.

IT IS THEREFORE ORDERED that the actions listed on Schedule A are transferred to the Eastern

DistrictofVirginiaand, with the consent ofthat court, assigned to the HonorableAnthony J. Trenga for

coordinated or consolidated pretrial proceedings.

PANEL ON MULTIDISTRICT LITIGATION

'Ce.

Sarah S. Vance

Chair

Charies R. Breyer Lewis A. Kaplan

Ellen Segal Huvelle R. David Proctor

Catherine D. Perry

A True Copy, Tests;

Clerk, U.S. District Court

Deputy Clerk

Case 3:15-cv-01074-JST Document 23 Filed 06/18/15 Page 2 of 3
IN RE: LUMBER LIQUIDATORS CHINESE-MANUFACTURED

FLOORING PRODUCTS MARKETING, SALES PRACTICES

AND PRODUCTS LIABILITY LITIGATION MDL No. 2627

SCHEDULE A

Central District ofCalifornia

TYRRELL, ET AL. v. LUMBER LIQUIDATORS, INC., C.A. No. 2:15-01615

KURD, ET AL. v. LUMBER LIQUIDATORS, INC., C.A. No. 5:15-00424

Northern District ofCalifornia

BALERO, ET AL. v. LUMBER LIQUIDATORS, INC., C.A. No. 3:15-01005

CONTE, ET AL. v. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 3:15-01012

EZOVSKJ, ET AL v. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 5:15-01074

Northern District of Florida

CONSTATINE v. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 4:15-00130

Southern District of Florida

BADIAS V. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 1:15-20876

Northern District ofIllinois

BLOOMFIELD v. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 1:15-01956

Eastern District of North Carolina

CAIOLA V. LUMBER LIQUIDATORS, INC., ET AL, C.A. No. 5:15-00094

Western District ofOklahoma

MARTIN, ET AL. v. LUMBER LIQUIDATORS, INC., ET AL., C.A. No. 5:15-00233

Case 3:15-cv-01074-JST Document 23 Filed 06/18/15 Page 3 of 3