Wells Fargo Class Action Alleges Company Sent Threatening COBRA Notices

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Wells Fargo COBRA Notices Class Action Lawsuit Overview: 

• Who: Guy Blessinger, Audra Niski and Nelson Ferreira filed a class action lawsuit against Wells Fargo & Company. 
• Why: The company is accused of sending “threatening” Consolidated Omnibus Budget Reconciliation Act (COBRA) notices that caused ex-workers to elect to not continue their health insurance coverage. 
• Where: The class action lawsuit was filed by Florida federal court. 

Wells Fargo failed to adequately notify participants and beneficiaries of its health plan of their right to continue their health insurance coverage after their employment with the company has ended. 

Plaintiffs Guy Blessinger, Audra Niski and Nelson Ferreira claim Wells Fargo sent “threatening” Consolidated Omnibus Budget Reconciliation Act (COBRA) notices that caused ex-workers to elect to not continue their health insurance coverage. 

COBRA notices are designed to help a company’s employees decide whether or not to continue their health insurance coverage after their employment has ended; however, Wells Fargo’s notices only served to “discourage” workers from continuing coverage, according to the Wells Fargo class action.

“The loss by Plaintiffs of medical, dental and vision continuation coverage are directly attributable to the ‘warning’ language needlessly included in Defendant’s COBRA notice because their inclusion resulted in Plaintiffs not enrolling in COBRA continuation coverage,” the Wells Fargo class action states.

Wells Fargo Attempted To ‘Scare Individuals Away’ From COBRA

The ex-workers claim Well Fargo did not write the COBRA notices in “a manner calculated to be understood by the average plan participant” while attempting to “scare individuals away from electing COBRA.” 

Wells Fargo includes an “ominous warning” in its COBRA notices, the ex-workers argue, with the notice suggesting that “the submission of even ‘incomplete’ information when electing COBRA may result in civil, or even criminal, penalties,” according to the Wells Fargo class action. 

Blessinger, Niski and Ferreira claim Wells Fargo is in violation of the Employee Retirement Income Security Act. 

Plaintiffs are demanding a jury trial and requesting declaratory and equitable relief along with statutory penalties for themselves and all class members. 

Blessinger, Niski and Ferreira, all ex-workers of Wells Fargo, want to represent a class of individuals who were sent a COBRA notice by Wells Fargo and who elected not to continue their health insurance coverage. 

Wells Fargo was in the news in March after an analysis by Bloomberg revealed the financial institution denied the mortgage refinancing applications of more than half of Black homeowners who applied in 2020. 

Have you received a threatening COBRA notice from your employer? Let us know in the comments! 

The plaintiffs are represented by Brandon J. Hill and Luis. A Cabassa of Wenzel Fenton Cabassa, P.A. 

The Wells Fargo COBRA Notices Class Action Lawsuit is Blessinger, et al. v. Wells Fargo & Company, Case No. 8:22-cv-01029, in the U.S. District Court for the Middle District of Florida.

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