Opinion

Haitham Saeed v. Scott Wilkinson

Court
District Court, C.D. California
Filed
Dec 13, 2019
Cited by
0 cases
Authority
More cited than 17.9%

The opinion

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES - GENERAL

Case No. CV 19-8634 FMO (AGRx) Date December 13, 2019

Title Haitham Saeed v. Scott Wilkinson, et al.

Present: The Honorable Fernando M. Olguin, United States District Judge

Cheryl Wynn None None

Deputy Clerk Court Reporter / Recorder Tape No.

Attorney Present for Plaintiff(s): Attorney Present for Defendant(s):

None Present None Present

Proceedings: (In Chambers) Order to Show Cause Re: Consolidation of Actions

On October 7, 2019, plaintiff Haitham Saeed (“plaintiff Saeed”) filed a shareholder

derivative complaint on behalf of Inogen, Inc. (“Inogen”) against various of Inogen’s corporate

officers (collectively, “defendants”). (See Haitham Saeed v. Scott Wilkinson, et al., Case No. CV

19-8634 FMO (AGRx) (C.D. Cal.) (“Saeed”), Dkt. 1, “Saeed Complaint” at Jf] 1, 31-78). Plaintiff

Saeed alleges claims for violation of section 14(a) of the Exchange Act, breach of fiduciary duty,

unjust enrichment, and waste of corporate assets. Plaintiff Saeed’s claims arise from allegations

that defendants misled investors about the reasons for Inogen’s initial financial success,

exaggerated the size of the market for the company’s products as well as its growth potential, and

failed to disclose material information about the company. (See Dkt 1, Saeed Complaint at □□ 5-

22).

Within weeks or months of the filing of plaintiff Saeed’s complaint, several other Inogen

shareholders filed derivative lawsuits against the company’s corporate officers, alleging the same

violations as plaintiff Saeed’ and making similar factual allegations. (See, generally, Twana

Brown v. Scott Wilkinson, et al., Case No. CV 19-5568 FMO (AGRx) (C.D. Cal.), Dkt. 1, “Brown

Complaint”; Carole Butcher v. Scott Wilkinson, et al., Case No. CV 19-8685 FMO (AGRx) (C.D.

Cal.), Dkt. 1, “Butcher Complaint’; John Mitchell v. Scott Wilkinson, et al., Case No. CV 19-9374

FMO (AGRx) (C.D. Cal.), Dkt. 1, “Mitchell Complaint’).

“If actions before the court involve a common question of law or fact, the court may...

consolidate the actions[.]” Fed. R. Civ. P. 42(a)(2). The court “weighs the saving of time and

effort consolidation would produce against any inconvenience, delay, or expense that it would

cause.” Huene v. United States, 743 F.2d 703, 704 (9th Cir. 1984). “A district court generally has

' Although plaintiff John Mitchell's factual allegations against defendants are substantively

similar, his causes of action are slightly different. (See John Mitchell v. Scott Wilkinson, et al.,

Case No. CV 19-9374 FMO (AGRx) (C.D. Cal.), Dkt. 1, “Mitchell Complaint” at {J 140-62). Unlike

the other three plaintiffs, plaintiff John Mitchell brought an insider trading claim and did not bring

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES - GENERAL

Case No. CV 19-8634 FMO (AGRx) Date December 13, 2019

Title Haitham Saeed v. Scott Wilkinson, et al.

‘broad’ discretion to consolidate actions[.]” Pierce v. Cty. of Orange, 526 F.3d 1190, 1203 (9th

Cir. 2008). Accordingly, IT |S ORDERED that by no later than December 20, 2019, the parties

shall file either a stipulation or response, not to exceed five pages, to show cause why the Saeed,

Brown, Butcher, and Mitchell actions should not be consolidated.

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Initials of Preparer cw

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