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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

CITY OF MIAMI GENERAL EMPLOYEES’ &

SANITATION EMPLOYEES’ RETIREMENT 

TRUST,

on behalf of itself and all others similarly 

situated, 

Plaintiff, 

vs. 

RH, INC., GARY FRIEDMAN, KAREN BOONE, 

Defendants. 

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Case No. 4:17-cv-00554-YGR

CLASS ACTION 

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 

ACTIONS 

 

DATE: May 10, 2017 

TIME: 2:00 p.m. 

CTRM: #1, 4th Floor (Oakland) 

JUDGE: Hon. Yvonne Gonzalez Rogers 

 

 
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Peter J. Errichiello, Jr., 

Individually and on Behalf of All Others 

Similarly Situated, 

Plaintiff, 

vs. 

RH, INC., GARY FRIEDMAN, KAREN BOONE, 

Defendants. 

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Case No. 4:17-cv-01425-YGR

 
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 Presently 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-cvYGR-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).1

 No party opposes the consolidation. 

Based 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. 

The 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 

 1 The Retirement Trust and Kalpesh Patel also filed motions, but thereafter withdrew them. (See Dkt. Nos. 

7 and 31; 21 and 28). 
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Teachers have selected Bernstein Litowitz Berger & Grossmann LLP as Lead Counsel for the 

Class, and that firm appears to be experienced, well-qualified counsel. 

Having carefully considered the papers submitted and the pleadings in this action, and for 

the reasons set forth below, the Court ORDERS as follows:2 

1. The Motion is GRANTED. 

2. The 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 Action. 

3. A 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. 

4. Every pleading in the Consolidated Action shall have the following caption: 

IN RE RH, INC. SECURITIES LITIGATION Case No. 4:17-00554 YGR 

5. To 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. 

6. 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). 

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 Pursuant to Federal Rule of Civil Procedure 78(b) and Civil Local Rule 7-1(b), the 

Court finds this motion appropriate for decision without oral argument. Accordingly, the Court 

VACATES the hearing set for May 10, 2017. This Order likewise rules on the parties’ stipulated 

request to extend the dates for responding to the complaint and the case management conference. 

(Dkt. No. 36). 
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7. 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. § 78u4(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 of this litigation, and to avoid 

duplicative or unproductive effort. Additionally, Lead Counsel shall have the following 

responsibilities: 

a. to brief and argue motions; 

b. to initiate and conduct discovery, including, but not limited to, 

coordination of discovery with Defendants’ counsel, and the preparation 

of written interrogatories, requests for admissions, and requests for 

production of documents; 

c. to direct and coordinate the examination of witnesses in depositions; 

d. to act as spokesperson at pretrial conferences; 

e. to call and chair meetings of Plaintiffs’ counsel as appropriate or 

necessary from time to time; 

f. to initiate and conduct any settlement negotiations with Defendants’ 

counsel; 

g. to provide general coordination of the activities of Plaintiffs’ counsel and 

to delegate work responsibilities to selected counsel as may be required, in 

such a manner as to lead to the orderly and efficient prosecution of this 

litigation and to avoid duplication or unproductive effort; 

h. to consult with and employ experts; 

i. to receive and review periodic time reports of all attorneys on behalf of 

Plaintiffs, to determine if the time is being spent appropriately and for the 
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benefit of Plaintiffs, and to determine (subject to Court approval) and 

distribute Plaintiffs’ attorneys’ fees; and 

j. to perform such other duties as may be expressly authorized by further 

order of this Court. 

In light of the foregoing, the Competing Motion is DENIED. 

The Court further Orders Lead Counsel to file a consolidated complaint within 21days of 

this Order. Defendants shall file their response to the complaint within 35 days thereafter. 

The Stipulation filed as Docket Number 36 is DENIED as moot. 

The case management conference, currently set for May 15, 2017, is continued to August 

28 at 2:00 p.m. in Courtroom 1, Federal Courthouse, Oakland, California. 

This Order terminates Docket Numbers 7, 11, 15, 21 and 36. 

IT IS SO ORDERED. 

DATED: _________ __________________________________________ 

HONORABLE YVONNE GONZALEZ ROGERS 

UNITED STATES DISTRICT COURT JUDGE