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Costco Wholesale Corp. COBRA Notice Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Costco Wholesale Corporation is paying three-quarters of a million dollars to settle a class action alleging it did not give departing employees a proper COBRA Notice. The complaint alleged the Notice was deficient because it did not adequately tell them how to exercise their right to choose COBRA continuation coverage, it contained inaccurate and misleading threats of criminal penalties and fines, and it was not written in a manner that could be understood by the average plan participant. COBRA allows former employees to continue to their healthcare coverage for a limited time after leaving a company.

Docket Number:

0:21-cv-61210-SINGHAL/VALLE

Company: Costco Wholesale Corporation

Filing Deadline: January 1, 2100

Class Period: June 9, 2018 to June 9, 2021

Objection Deadline: September 27, 2022

Exclusion Deadline: September 27, 2022

Final Approval Hearing: November 4, 2022

Proof of Purchase:

You do not need to provide proof.

Eligibility:

You may be eligible if you are a participant or beneficiary in the Costco Employee Benefits Program who was sent the COBRA Notice by or on behalf of Costco, at any time between June 9, 2018 and June 9, 2021, who did not choose COBRA coverage. If you received a notice about this settlement in the mail, you are likely a member of the settlement class.

Typical Settlement Amount:

Portion of the net settlement fund, which will be divided equally on a pro-rata basis. Expected to be around $9.72.

Total Settlement Amount: $750,000

Class Representative Proposed Incentive Fee:

$10,000

Law Firms:
Morgan & Morgan
Wenzel Fenton Cabassa PA

Case Name:

Settlement Website: Baja COBRA Settlement Website

Claims Administrator:
American Legal Claim Services, LLC

Claims Administrator Contact Information:

Baja v. Costco Wholesale Corporation
c/o Settlement Administrator
PO. Box 23680
Jacksonville, FL 32241-3680
800-706-6619

Tags: Failure to provide proper notice and/or obtain proper authorization, Improper COBRA Notice