Eisen v. Carlisle & Jacquelin
United States Supreme Court
417 U.S. 156 (1974)
Eisen (plaintiff), an odd-lot stock trader, brought an antitrust class action against firms handling nearly all odd-lot trading on the NYSE (defendant), representing roughly 2.25 million class members, alleging an unlawful monopoly and excessive trading differentials in violation of the Sherman Act. After extended proceedings over class certification, the district court found the class could be certified but ordered the defendants to pay 90% of the substantial cost of individual notice, based on its own assessment that the class was likely to prevail on the merits. The defendants appealed, and the case eventually reached the Supreme Court to resolve the notice and cost-allocation questions.
Whether Rule 23(c)(2) requires individual notice to every identifiable class member whose name and address can be ascertained through reasonable effort, with the plaintiff initially bearing the cost of that notice.