BINN LLC v. ABBE (2020)

SUMMARY ORDER

Appellant Richard K. Abbe appeals from the August 29, 2019 order of the United States District Court for the Southern District of New York (Stanton, J.) denying him leave to pursue a motion for Rule 11 sanctions against Plaintiffs-Appellees Moreton Binn and Marisol F, LLC pursuant to the Private Securities Litigation Reform Act (“PSLRA”), 15 U.S.C. § 78u-4(c)(1). We assume the parties’ familiarity with the underlying facts, procedural history, and specification of issues for review.

The PLSRA requires that a district court “include in the record specific findings regarding compliance by each party and each attorney representing any party with each requirement of Rule 11(b) of the Federal Rules of Civil Procedure as to any complaint, responsive pleading, or dispositive motion.” 15 U.S.C. § 78u-4(c)(1). Abbe argues that the district court's one-sentence order, which states in its entirety that “[f]or substantially the reasons set forth in plaintiffs [sic] August 12, 2019 letter, this application is denied,” Special App'x at 1, does not comply with the requirements of the PSLRA. We agree. The district court's reference to Appellants’ letter is insufficient to satisfy its statutory obligation. The letter does not make specific findings as to each claim, nor does it address each attorney or plaintiff's conduct in bringing the present action. “As the [PSLRA] require[s] the district court to make findings, we have no choice but to remand in order to permit it to do so.” Gurary v. Winehouse, 190 F.3d 37, 47 (2d Cir. 1999); see also Thompson v. RelationServe Media, Inc., 610 F.3d 628, 638-39 (11th Cir. 2010) (“[T]he PSLRA, by its own terms, clearly requires findings as to each claim, each party, and each attorney.”).

Accordingly, the order of the district court hereby is VACATED and the case is REMANDED for further proceedings consistent with this order.