Stefanie Nelson v. Anthony Geisler et al

Filing 10

(IN CHAMBERS) ORDER TO SHOW CAUSE RE: CONSOLIDATION by Judge John W. Holcomb. Response to Order to Show Cause due by 3/21/2025. See document for further information. (es)

Action”). 3 In that Order, the Court directed the Parties to assist the Court by
calling to the Court’s attention any action arising out of the same transactions or
occurrences as the Consolidated Derivative Action and asserting direct and/or
derivative state law claims and/or derivative claims based on the federal securities
laws, whether filed in this Court or transferred here, and Co-Lead Counsel shall
assure that counsel therein receive notice of this Stipulation and Order. 4
On February 10, 2025, Stefanie Nelson filed an action against Individual
Defendants and Nominal Defendant Xponential—Case No. 8:25-cv-00258 (the
“Nelson Action”)—for the essentially the same claims, arising from the same set
of facts. 5
On February 20, 2025, in the Consolidated Derivative Action, Plaintiffs filed
the instant Notice of Related Cases, requesting the Court to consolidate the Nelson
Action into the Consolidated Derivative Action. 6 In that Notice, counsel
represented to the Court that both Plaintiffs’ and Defendants’ counsel agree to the
proposed consolidation. 7 However, Nelson’s counsel did not sign that Notice.
The Court believes that the consolidation of the Consolidated Derivative
Action and the Nelson Action might be appropriate. Courts often find it
appropriate to consolidate two cases when those cases include similar parties and
share common questions of law and fact. See Fed. R. Civ. P. 42(a); see also In re
Adams Apple, Inc., 829 F.2d 1484, 1487 (9th Cir. 1987) (“[T]rial courts may
consolidate cases sua sponte . . . .”). Here, the cases include similar parties—i.e.,
Xponential—as well as common questions of law and fact.
In view of that background, the Court hereby ORDERS as follows:
1.
Nelson is DIRECTED to show cause in writing no later than
March 21, 2025, why the Court should or should not consolidate these cases.

3

See Order Regarding Joint Stipulation to Consolidate Derivative Actions Case
No. 2:24-cv-03937-JWH-KES [ECF No. 25].
4
See id.
5
See generally Complaint in Nelson Action [ECF No. 1].
6
Pl.’s Notice of Related Derivative Action [ECF No. 30].
7
See id.
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2.
A hearing on this OSC is SET for April 4, 2025, at 11:00 a.m. in
Courtroom 9D of the Ronald Reagan Federal Building and U.S. Courthouse, 411
W. 4th Street, Santa Ana, California.
IT IS SO ORDERED.

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