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It depends on the jurisdiction and circumstances. In Federal Court, there are sanctions as a penalty (to deter more frivolous action) and damages (to compensate the other side). See http://www.law.cornell.edu/rules/frcp/rule_11#rule_11_c

A court may: - Order one side pay for the other side's attorney's fees - Order one side to pay for the court's wasted time - Dismiss the case - Issue a public reprimand

Also, an attorney may violate professional responsibility laws which could have other penalties, such as being disbarred.