ATSI COMMUNICATIONS, INC. v. SHAAR FUND, LTD.

Docket No. 08-1815-cv.

579 F.3d 143 (2009)

ATSI COMMUNICATIONS, INC., a Delaware Corporation, Plaintiff, Maryann Peronti, Gary M. Jewell and James Wes Christian, Christian Smith & Jewell, LLP, and Koerner, Silberberg & Weiner, LLP, Appellants, v. The SHAAR FUND, LTD., Levinson Capital Management, Shaar Advisory Services, N.V., Marshall Capital Services, LLC, Jesup & Lamont Structured Finance Group, RGC International Investors, LDC, Rose Glen Capital Management L.P., MG Security Group, Inc., Corporate Capital Management, Crown Capital Management, Intercaribbean Services, Ltd., John Does 1-50, Kenneth E. Gardiner, Citco Funds Svcs., IUC Hollman, W.J. Langveld, Sam Levinson, Hugo Van Neutegem, Declan Quilligan, Nathan Lihon, Wayne Bloch, Gary Kaminsky, Steve Katznelson and SEI Investment Co., Defendants, Knight Capital Markets, LLC, Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided: September 2, 2009.


Attorney(s) appearing for the Case

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

Thorn Rosenthal, Cahill Gordon & Reindel LLP, New York, NY, for Defendant-Appellee.

Before: JACOBS, Chief Judge, CALABRESI and POOLER, Circuit Judges.


DENNIS JACOBS, Chief Judge:

Three lawyers and their two firms appeal from an order imposing sanctions entered in the Southern District of New York (Kaplan, J.). The lawyers represented plaintiff ATSI Communications, Inc. ("ATSI") in a lawsuit alleging (inter alia) that Knight Capital Markets, LLC ("Knight"), the principal market-maker in ATSI stock on the American Stock Exchange ("AMEX") (along with a collection of hedge funds and individual defendants...

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