IN RE INITIAL PUBLIC OFFERING SECURITIES LITIGATION

No. MDL 1554(SAS). No. 21 MC 92(SAS). No. 04 Civ. 3757(SAS).

399 F.Supp.2d 369 (2005)

In re: INITIAL PUBLIC OFFERING SECURITIES LITIGATION Amy Liu, Robert Tenney, Robert Tate, Mary Gorton, Carla Kelly, Henry Ciesielski, ED Grier, Frank Turk, Jennie Papuzza, Stanley Warren, Ellen Dulberger, Craig Mason, and Sharon Brewer, Plaintiffs, v. Credit Suisse First Boston Corp., Credit Suisse First Boston (USA), Inc., Credit Suisse First Boston, Credit Suisse Group, Efficient Networks, Inc., eMachines, Inc., Lightspan Partnership, Inc., Tanning Technology Corp., and Tumbleweed Communications Corp., Defendants.

United States District Court, S.D. New York.

July 27, 2005.


Attorney(s) appearing for the Case

John G. Watts, Yearout & Traylor, P.C., Birmingham, AL, for Plaintiffs.

Kristin Linsey Myles, Robert L. Dell Angelo, Munger, Tolles & Olson LLP, San Francisco, CA, Michael L. Hirschfeld,

John A. Boyle, Milbank, Tweed, Hadley & McCloy LLP, New York, NY, Randall J. Clement, Sheppard, Mullin, Richter & Hampton LLP, Costa Mesa, CA, Mitchell E. Herr, Holland & Knight LLP, Miami, FL, for Issuer Defendants.

Peter K. Vigeland, Robert W. Trenchard, Wilmer, Cutler & Pickering, New York, NY, for CSFB Defendants.


OPINION AND ORDER

SCHEINDLIN, District Judge.

Plaintiffs' claims in the Liu action, No. 04 Civ. 3757, have been dismissed.1 Defendants now request sanctions pursuant to the Private Securities Litigation Reform Act (the "PSLRA"), 15 U.S.C. § 78u-4(c), and Rule 11 of the Federal Rules of Civil Procedure.

I. LEGAL STANDARD

Section 21(D)(c) of the PSLRA, entitled "Sanctions for abusive...

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