You're being overly officious. I see players doing this from time to time and I've never seen a defender encrpoach because of it. Yes, they are required to come to an absolute stop for one second but IMHO, it's nitpicky to make such a call. Personally, I would just have warned the coach that it is a technical infraction of the rules and be done with it.
BTW, if you're going to call this, it wouldn't be a false start. It would be an illegal shift if you're going to rule that all 11 players never came set.
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