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ATSI Comms., Inc. v. Shaar Fund, No. 08-1815

By FindLaw Staff on September 02, 2009 | Last updated on March 21, 2019

In an appeal from an order imposing sanctions on three attorneys and their law firms pursuant to Fed. R. Civ. P. 11 and the mandatory sanctions provision of the Private Securities Litigation Reform Act of 1995, the order is affirmed to the extent that it imposed sanctions, where In re Pennie & Edmonds LLP, 323 F.3d 86 (2d Cir. 2003) (Pennie) did not require the district court to find subjective bad faith before imposing sanctions.  However, because the concerns identified in Pennie remained relevant to assessing the "reasonableness" of an opposing party's fees under 15 U.S.C. section 78u-4(c)(3), the amount of the award is vacated and the case is remanded for further proceedings.

Read ATSI Comms., Inc. v. Shaar Fund, No. 08-1815

Appellate Information

Argued: July 6, 2009

Decided: September 2, 2009

Judges

Opinion by Chief Judge Jacobs

Counsel

For Appellants:

Thomas I. Sheridan, III, Hanly Conroy Bierstein Sheridan Fisher & Hayes LLP, New York, NY

For Appellee:

Thorn Rosenthal, Cahill Gordon & Reindel LLP, New York, NY

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