Islamic Shura Council v. FBI, No. 07-1088, 2011 WL 5593132 (C.D. Cal. Nov. 17, 2011) (Carney, J.).  Holding:  Granting plaintiffs' motion for sanctions in the amount of reasonable attorneys' fees for bringing the instant motion.  The court grants plaintiffs' motion for sanctions against the government in the amount of reasonable attorneys' fees for bringing the instant motion.  As an initial matter, the court finds that the safe harbor provision of Rule 11(c)(2) is inapplicable "here because the Government did not withdraw or amend its erroneous filings" within the required time period.  As a general rule, the court notes that "[t]he imposition of sanctions [under Federal Rule of Civil Procedure 11] is a matter within the court's discretion."  Here, the court notes that "[t]he parties do not dispute that the Government did not act out of some improper purpose or in bad faith when submitting misinformation to the Court," accordingly, "the court's inherent powers to impose sanctions [under Rule 11(b)(1)] do not apply."  Although the court recognizes that "the Government did not act in bad faith," the court finds that it nevertheless "presented false information to the Court—not negligently or without reasonable inquiry—but with the Government's full knowledge, over the course of two years in litigating this action, and after diligent factual inquiry."  The court rejects defendant's defense that its "delayed disclosure of the truthful facts to the Court is based on its policy and practice under FOIA to disclose information at the earliest time possible in litigation without alerting the requester to national security-sensitive information."  Rather, the court notes that "[p]arties cannot choose when to tell the Court the truth" and must do so throughout the proceeding.  The court observes that "[t]he Government could have availed itself of routine court procedures without compromising national security, such as by filing an in camera declaration concurrently with its public filings" or "could have employed a Glomar response or submitted sealed briefings concurrently with its public filings."