N.D. Ill. Requires Individual Notice to Potential Class Members to Eliminate Confusion Arising from Existence of a Related Action

BNA’s Class Action Litigation (Volume 07 Number 05, Fri., Mar. 10, 2006, Page 149, ISSN 1529-8000) is reporting on In re Sears, Roebuck & Co. ERISA Litigation, No. 02 C 8324 (N.D. Ill. Feb. 5, 2006):

Potential class members in a suit challenging the Sears, Roebuck & Co. 401(k) plan must receive individual notices about the pending action, a federal court in Illinois held Feb. 15 (In re Sears, Roebuck & Co. ERISA Litigation, N.D. Ill., No. 02 C 8324, 2/15/06). . . even though the cost of such notice "would be complex and expensive."

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The court agreed to require individual class notice because a class notice had already been disseminated in a related securities case against Sears. According to the court, class members needed to be informed of the distinct nature of the ERISA litigation so as to eliminate any confusion regarding the class members' retirement account losses in the two cases.

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