Lee v. HSBC Bank USA, Nat'l Ass'n (May 7, 2026)

Case details
Full caption
Song Dow Lee, et al. v. HSBC Bank USA, National Association, et al.
Country
United States
Jurisdiction
Federal
Decided
May 7, 2026
Song Dow Lee, et al. v. HSBC Bank USA, National Association, et al., Slip Copy (2026) © 2026 Thomson Reuters. No claim to original U.S. Government Works.12026 WL 1270038Only the Westlaw citation is currently available.United States District Court, C.D. California.Song Dow Lee, et al.v.HSBC Bank USA, National Association, et al.Case No. CV 26-1198-JFW(Ex)|Filed 05/07/2026Editor's Note: This decision contains discussion of citationreferences that are incorrect or do not actually exist. Theseinvalid citations appeared in the original court opinion andhave been preserved as written since they are part of theofficial record. Any links to these invalid citations have beenremoved.Attorneys and Law FirmsShannon Reilly, Courtroom Deputy, ATTORNEYSPRESENT FOR PLAINTIFFS: NoneNone Present, Court Reporter, ATTORNEYS PRESENTFOR DEFENDANTS: NonePROCEEDINGS (IN CHAMBERS): ORDERTO SHOW CAUSE RE: SANCTIONSHONORABLE JOHN F. WALTER, UNITED STATESDISTRICT JUDGE*1 In Plaintiffs' Opposition to Defendant's Motion toDismiss, Plaintiffs misrepresent the holdings of severalcases, and even include a non-existent quotation. See, e.g.,Opposition at 12 (stating that, “[i]n BPi Bright Power, Inc. v.Umpqua Holding Corp., 669 F.Supp.3d 904, 906 (N.D. Cal.2023), the court recognized that Article 4A ‘addresses themechanics of executing wire transfers and payment orders,’not a bank's pre-contractual representations or its generalduty to provide advertised services.”). Even after Defendantpointed out several of Plaintiffs' misrepresentations inits Reply, see Docket No. 36 at 11, Plaintiffs failed tocorrect those misrepresentations in their Proposed Statementof Decision filed on April 15, 2026 (Docket No. 39).Accordingly, Plaintiffs' counsel are ordered to show cause, inwriting, on or before May 11, 2026, why this Court should notimpose sanctions on counsel in the amount of $2,500.00 and/or dismiss this action. Plaintiffs' counsel shall file declarationsin support of their response to the order to show cause, whichshall address, inter alia, whether artificial intelligence wasused to draft Plaintiffs' Opposition and Proposed Statementof Decision, and what actions counsel took to determine thatany of the propositions of law relied on by Plaintiffs wereaccurate. No oral argument on this matter will be heard unlessotherwise ordered by the Court. See Fed. R. Civ. P. 78; LocalRule 7-15. The Order to Show Cause will stand submittedupon the filing of the response to the Order to Show Cause.Failure to respond to the Order to Show Cause will result inthe imposition of sanctions and/or dismissal of this action.IT IS SO ORDERED.All CitationsSlip Copy, 2026 WL 1270038End of Document© 2026 Thomson Reuters. No claim to original U.S. Government Works.
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