CONDITIONAL TRANSFER ORDERS

CONDITIONAL TRANSFER ORDERS (CTO) FOR POTENTIAL TAG-ALONG ACTIONS (a) Notice of Potential Tag-along Actions. Any party or counsel in actions previously transferred under Section 1407 shall promptly notify the Clerk of the Panel of any potential tag-along actions in which that party is also named or in which that counsel appears. When informed of a potential tag-along action, the Panel has several options: (i) file a CTO under Rule 7.1, (ii) file a show cause order under Rule 8.1, or (iii) decline to act (Rule 7.1(b)(i)). (b) Initiation of CTO. Upon learning of the pendency of a potential tag-along action, the Clerk of the Panel may enter an order conditionally transferring that action to the previously designated transferee district court for the reasons expressed in the Panel’s previous opinions and orders. The Clerk of the Panel shall serve this order on each party to the litigation but shall not send the order to the clerk of the transferee district court until 7 days after its entry. (i) If the Clerk of the Panel determines that a potential tag-along action is not appropriate for inclusion in an MDL proceeding and does not enter a CTO, any party may move for its transfer pursuant to Rule 6.1. (c) Notice of Opposition to CTO. Any party opposing the transfer shall file a notice of opposition with the Clerk of the Panel within the 7-day period. In such event, the Clerk of the Panel shall not transmit the transfer order to the clerk of the transferee district court, but shall issue a “Notice of Filed Opposition” notifying the parties of the briefing schedule. (d) acquiescence to it. Failure to Respond. Failure to respond to a CTO shall be treated as that party’s (e) Notice of Appearance. Within 14 days of the Clerk of the Panel issuing a “Notice of Filed Opposition” to a CTO, each opposing party or designated attorney shall file a Notice of Appearance in accordance with Rule 4.1(c). (f) Corporate Disclosure Statement. Within 14 days of the Clerk of the Panel issuing a “Notice of Filed Opposition” to a CTO, each non-governmental corporate party shall file a corporate disclosure statement in accordance with Rule 5.1(a). (g) Motion to Vacate CTO. Within 14 days of the Clerk of the Panel issuing a “Notice of Filed Opposition” to a CTO, the party opposing transfer shall file a motion to vacate the CTO and brief in support thereof. The Clerk of the Panel shall set the motion for the next appropriate hearing session. Failure to file and serve a motion and brief shall be treated as withdrawal of the opposition, and the Clerk of the Panel shall forthwith transmit the order to the clerk of the transferee district court. (h) Notification of Developments. Parties to an action subject to a CTO shall notify the Clerk of the Panel if that action is no longer pending in its transferor district court. (i) Effective Date of CTO. A CTO becomes effective (also referred to as “finalized”) when it is filed with the clerk of the transferee district court. - 10 - RULE 7.2: MISCELLANEOUS PROVISIONS CONCERNING POTENTIAL TAG-ALONG ACTIONS (a) Actions Filed in the Transferee Court. Civil actions filed in the transferee district that involve common questions of fact with the actions pending in an MDL (also called direct-filed actions) are not potential tag-along actions and do not require Panel action. A party should request assignment of such actions to the Section 1407 transferee judge in accordance with applicable local rules. Parties should not list direct-filed actions on a notice of potential tag-along actions. (b) Failure to Serve. Failure to serve one or more of the defendants in a potential tag-along action with the complaint and summons as required by Rule 4 of the Federal Rules of Civil Procedure does not preclude transfer of such action under Section 1407. Such failure, however, may constitute grounds for denying the proposed transfer where prejudice can be shown. The failure of the Clerk of the Panel to serve a CTO on all plaintiffs or defendants or their counsel may constitute grounds for the Clerk to reinstate the CTO or for the aggrieved party to seek Section 1407(c) remand.