ELR Citation: ELR 20513
No(s). 73-203 (U.S. May 28, 1974)

The Supreme Court holds that Rule 23(c)(2) requires the plaintiff in a class action on behalf of all odd-lot traders using the New York Stock Exchange to send individual notice to all members of the class who can be identified with reasonable effort. Such individual notice is clearly the "best notice practicable" within the meaning of the rule, and notice by publication will therefore not suffice. The fact that the cost of mailing individual notice may be prohibitively high to the plaintiff cannot change this result, since the notice requirement is an unambiguous and non-discretionary provision of Rule 23. The plaintiff must bear the total cost of notice, and the district court thus erred in approtioning 90 percent of the cost to defendants on the basis of a finding that plaintiff was likely to prevail on the merits.

Counsel for Plaintiff
Mordecai Rosenfeld
233 Broadway
New York. NY 10007

Counsel for Defendants
Debereux Milburn
2 Wall Street
New York, NY 10005