Fed. Sec. L. Rep. P 98,023, 8 Fed. R. Evid. Serv. 475 Pauline Weil and Emanuel J. Weil, on Behalf of Themselves and All Others Similarly Situated v. Investment/indicators, Research and Management, Inc., Desmond W. Mitchell, Charles R. Schwab, Robert Birkie, John Hossfeld, Marjorie A. Wegner and Laurel Brook Farms, Inc.

647 F.2d 18 Fed. Sec. L. Rep. P 98,023, 8 Fed. R. Evid. Serv. 475 Pauline WEIL and Emanuel J. Weil, on Behalf of Themselves and all Others Similarly Situated, Plaintiffs-Appellants, v. INVESTMENT/INDICATORS, RESEARCH AND MANAGEMENT, INC., Desmond W. Mitchell, Charles R. Schwab, Robert Birkie, John Hossfeld, Marjorie A. Wegner and Laurel Brook Farms, Inc., Defendants-Appellees. CA No. 77-2754. United States Court of Appeals, Ninth Circuit. Argued and Submitted March 12, 1980. Decided June 1, 1981. Rehearing and Rehearing En Banc Denied Aug. 28, 1981. Arthur W. Friedman, Devoe, Shadur & Krupp, Chicago, Ill., for plaintiffs-appellants. Reed H. Bement, George M. Carr, Carr, Smulyan & Hartman, John B. Bates, Jr., San Francisco, Cal., for defendants-appellees. Appeal from the United States District Court for the Northern District of California. Before TRASK and WALLACE, Circuit Judges, and EAST, * District Judge. TRASK, Circuit Judge: 1 This case is before us on appeal from the district court's dismissal of appellant Weil's complaint because she failed to post a $40,000 undertaking ordered by the court pursuant to section 11(e) of the Securities Act of 1933 (the '33 Act), 15…