Investorman, ... "Only if he wants to go to court....."
Hodges is in court. And, he is the one who drafted the complaint and signed the complaint. So, he has already subjected himself to Rule 11(c) sanctions.
"(c) Sanctions. (1) In General.
If, after notice and a reasonable opportunity to respond, the court determines that Rule 11(b) has been violated, the court may impose an appropriate sanction on any attorney, law firm, or party that violated the rule or is responsible for the violation. Absent exceptional circumstances, a law firm must be held jointly responsible for a violation committed by its partner, associate, or employee.
(2) Motion for Sanctions.
A motion for sanctions must be made separately from any other motion and must describe the specific conduct that allegedly violates Rule 11(b). The motion must be served under Rule 5, but it must not be filed or be presented to the court if the challenged paper, claim, defense, contention, or denial is withdrawn or appropriately corrected within 21 days after service or within another time the court sets. If warranted, the court may award to the prevailing party the reasonable expenses, including attorney's fees, incurred for the motion.
(3) On the Court's Initiative.
On its own, the court may order an attorney, law firm, or party to show cause why conduct specifically described in the order has not violated Rule 11(b)."
I don't think Hodges can just walk away now. If he withdraws or changes the complaint, the Xers will figuratively kill him. If he doesn't, the defendants and/or judge (or members of his own firm) will figuratively kill him. Hodges has boxed himself in.
Most of the defendants have been served and have been caused the inconvenience and embarrassment - if not the actual cost - of defending against these goofy claims. I would be very surprised if subsection 3 (Court's Initiative) is not used by the judge by issuing an order to show cause. ... eom
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