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Case 3:11-cv-00191-F Document 119 Filed 01/26/11 Page 1 of 3 PageID 1567

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8 UNITED STATES DISTRICT COURT


9 CENTRAL DISTRICT OF CALIFORNIA
SOUTHERN DIVISION
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11 In re: Medical Capital Securities Case No. ML 10-2145 DOC (RNBx)
Litigation
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13 ORDER TRANSFERRING VENUE
AS TO CERTAIN ACTIONS FOR
14 ) COORDINATED SETTLEMENT
15 NEGOTIATIONS
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17 This document relates to:
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McCoy, SACV09-1084 DOC (RNBx)^
19 Grossbard, SACV 10-0478 DOC (RNBx)
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ORDER TRANSFERRING VENUE AS TO CERTAIN ACTIONS
FOR COORDINATED SETTLEMENT NEGOTIATIONS
CASE NO. SAML10-2145DOC (RNBx)
11003583.1
• a Case 3:11-cv-00191-F Document 119 Filed 01/26/11 Page 2 of 3 PageID 1568

1 Certain defendants in this case are also named as defendants in an action currently
2 Pending before the Honorable W. Royal Furgeson, Jr., Billitteri v. Securities Americu,
3 Inc., et al., Case No. 09-cv-01568 (N.D. Tex.). The Billitteri case is a proposed class
4 action against broker-dealers who offered and sold securities issued through partnerships
5 and corporations created by Provident Royalties, Inc. Certain broker-dealers who sold
6 both the Provident securities and the Medical Capital securities at issue in this case are
7 named as defendants in both actions.
8 Judge Furgeson recently preliminarily approved a class settlement on a limited
9 fund basis under Federal Rule of Civil Procedure 23(b)(1)(B) with one of these common
10 defendants, Capital Financial Services, Inc. The other defendants named in both actions
11 are broker defendants Securities America, Inc. and National Securities Corp., and their
12 parent companies. These broker defendants assert that they have limited insurance and
13 other assets that are being rapidly depleted by the defense of the class actions, state
14 actions, and numerous arbitrations. Judge Furgeson has indicated a willingness to preside
15 over coordinated settlement negotiations in an effort to maximize the potential recovery
16 to investors who purchased Provident and Medical Capital securities from these common
17 broker defendants. The Court is persuaded that such an effort would be worthwhile.
18 . The Court therefore orders that venue as to the actions containing claims against
19 broker defendants Capital Financial, Securities America, and National Securities, and the
20 alleged parent companies of these broker defendants, Capital Financial Holdings, Inc.,
21 Ameriprise Financial, Inc., Securities America Financial Corp., and National Holdings
22 Corp., is hereby transferred to the Northern District of Texas, Dallas Division, pursuant
23 to 28 U.S.C. § 1404(a), so that coordinated settlement negotiations can be conducted
24 under Judge Furgeson's supervision, with any resulting settlement subject to his
25 approval, for those parties wishing to engage in such a process. The individual actions
26 hereby transferred are McCoy, SACV09-1084 DOC (RNBx) and Grossbard, SACV 10-
27 0478 DOC (RNBx).
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ORDER TRANSFERRING VENUE AS TO CERTAIN ACTIONS
FOR COORDINATED SETTLEMENT NEGOTIATIONS
CASE NO. SAML 10-2145DOC (RNBx)
11003583.1
Case 3:11-cv-00191-F Document 119 Filed 01/26/11 Page 3 of 3 PageID 1569

1 The Court reiterates that this transfer is solely for purposes of coordinated
2 settle v 1 . ' • • •

3 transferred back to this Court for further proceedings, including determination of pending
4 motions to dismiss, in the event and to the extent that the settlement effort is not
5 successful as to any or all parties, as contemplated by the Judicial Panel on Multidistrict
6 Litigation when it ordered centralization of these cases in the Central District of
7 California.
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9 IT IS SO ORDERED.
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12 DATED:
Hon. David O. Carter, U.S.D.J.
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ORDER TRANSFERRING VENUE AS TO CERTAIN ACTIONS
FOR COORDINATED SETTLEMENT NEGOTIATIONS
CASE NO. SAML 10-2145DOC (RNBx)
11003583.1

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