Sanctions are being leveled at attorneys for plaintiffs in a securities class action who based their complaint, which they later withdrew, on a mistaken reading of a business magazine. New York federal Judge Denise Cote said the misreading of the news article on internal e-mails that allegedly incriminated the defendant company -- and subsequent lack of diligence or further inquiry -- was an "act of gross negligence bordering on recklessness."
Plaintiffs Attorneys Sanctioned for 'Spurious' Allegation
New York Law Journal
May 14, 2010