Costco COBRA $750K class action settlement

Costco has agreed to pay $750,000 to settle a class action lawsuit that alleged the company violated federal law by failing to notify almost 40,000 current and former employees of their eligibility for the Consolidated Omnibus Budget Reconciliation Act, or COBRA. 

Class members include all participants and beneficiaries in the Costco Employee Benefits Program who were sent the COBRA notice by or on behalf of Costco at any point between June 9, 2018, and June 9, 2021, and did not elect COBRA coverage. Court documents estimate the class to consist of around 38,818 members.

COBRA allows people who have quit or lost their job to temporarily opt to stay on the same employer-based health insurance plan they had at their previous job, usually for up to 18 months; it is offered by most employers with group health plans.

Costco is a membership-based wholesaler with millions of members worldwide, according to the company’s website.

Class members will be eligible to receive a proportional amount of the settlement fund based on the number of class members that submit valid claims for benefits. 

Of the settlement fund, $250,000 has been allocated for attorneys’ fees, $14,473.20 has been allocated for litigation costs and $98,097 has been allocated for the costs of administering the settlement. 

After all fees and costs have been paid from the settlement fund, the remainder will be distributed in the form of cash payments to class members. 

The settlement website estimates that class members will be eligible for payments of around $9.72.

Allegedly, Costco sent current and former employees a COBRA notice, which informed them of their right to have healthcare benefits with Costco after the termination of their employment with the company. However, the notice allegedly did not “adequately inform class members of how to exercise their right to elect COBRA coverage,” and in so doing violated the Consolidated Omnibus Budget Reconciliation Act of 1985.

Costco does not admit any wrongdoing in response to these claims, but has agreed to settle the Costco COBRA class action settlement to avoid the costs and risks of continued litigation.

The deadline to opt out of the settlement, submit a dispute or file an objection to the settlement is September 27, 2022.

Class members are invited to attend a final fairness hearing in the Costco COBRA class action settlement, scheduled for Nov. 4, 2022. 

The deadline to file a claim in the Costco COBRA class action settlement is Sept. 27, 2022.

Who’s Eligible

Class members include all participants and beneficiaries in the Costco Employee Benefits Program who were sent the COBRA notice by or on behalf of Costco at any point between June 9, 2018, and June 9, 2021, and did not elect COBRA coverage. Court documents estimate the class to consist of around 38,818 members.

Potential Award

About $9.72.

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Deadline

09/27/2022

Case Name

John G. Baja v. Costco Wholesale Corp., Case No. 0:21-cv-61210-SINGHAL/VALLE, in the District Court for the Southern District of Florida, Fort Lauderdale Division

Final Hearing

11/04/2022

Settlement Website

BajaCobraSettlement.com

Claims Administrator

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

Class Counsel

Luis A Cabassa
Brandon J Hill
WENZEL FENTON CABASSA PA

Defense Counsel

Edward J Meehan
Mark C Nielsen
Paul J Rinefierd
GROOM LAW GROUP