Excerpt: "The U.S.D.C. S.D. California on Mar. 2, 2001, tackled for the first time
a procedural issue under the Private Securities Litigation Reform Act - at what
point in a securities lawsuit, a district court must make mandated Fed. R. Civ.
P. 11 findings that could lead to the imposition of sanctions (DeMarco v.
Depotech Corp., S.D. California, Case No. 98-CV-0675 W (POR), 03/02/2001).
Judge Thomas Whelan determined that the statute's phrase requiring Rule 11
findings upon "final adjudication of the action" occurs upon the district court's
termination and final disposition of the underlying action and does not require
any additional exhaustion of appellate remedies." This result is consistent with
those of courts in other jurisdictions that have considered the issue, Whelan
As it previously dismissed the class securities fraud action here with prejudice,
the court said it is 'appropriate for this Court to make Rule 11 findings at this
time.' The court determined after analysis that no such sanctions were