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Pastimes : Investment Chat Board Lawsuits
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To: Jeffrey S. Mitchell who wrote (8913)9/7/2005 9:52:41 AM
From: scion  Read Replies (1) of 12465
 
Justice dispensed - The next question, then, is whether the plaintiffs’ counsel knew, or would have known upon a reasonable inquiry, that the claims were frivolous. I conclude that Mr. Faro failed to make a reasonable inquiry into the facts on which the plaintiffs’ defamation claim was predicated. Had he made such a reasonable inquiry, he would have discovered that the plaintiffs’ defamation claim against the media defendants was frivolous. Indeed, a reasonable inquiry into the law of defamation would have revealed that the fundamental elements of a defamation claim were lacking, and that there was no legal authority for recovery under any of the theories the plaintiffs alleged.

Under Worldwide Primates, my findings thus far mandate the award of sanctions against Mr. Faro. See 87 F.3d at 1254. Rule 11 sanctions are even more appropriate here, however, because there is evidence that the plaintiffs filed their amended complaint in bad faith or for improper purposes. See id.
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