Fiat Chrysler COBRA notice $600K class action settlement

Fiat Chrysler will pay $600,000 to resolve claims it failed to properly notify its employees of their rights under COBRA.

The settlement benefits participants and beneficiaries of FCA US LLC health plans subject to Employee Retirement Income Security Act (ERISA) and the Consolidated Omnibus Budget Reconciliation Act — or COBRA — who were sent a COBRA notice but did not elect COBRA coverage. According to the settlement agreement, there are nearly 30,000 class members included under this definition.

Fiat Chrysler Automobiles (FCA) US LLC, now known as Stellantis after a merger with Groupe PSA, manufactures cars under several brands including Fiat and Chrysler. Thousands of workers are employed by the company across the country. 

According to a class action lawsuit against Fiat Chrysler, the company failed to properly notify its employees of their rights under federal law.

Specifically, plaintiffs in the case contend FCA failed to give proper notice of their continuation of health coverage rights under COBRA. Although FCA did provide a COBRA notice to employees, this notice allegedly contained inaccurate and misleading statements that threatened criminal penalties and fines, all while failing to properly inform employees how they could exercise their COBRA rights.

As a result of this notice, some employees chose to not opt into COBRA coverage. If they had been sufficiently notified of their rights, the plaintiffs argue, these employees may have chosen to elect COBRA coverage.

Fiat Chrysler hasn’t admitted any wrongdoing but agreed to resolve claims with a $600,000 settlement. 

Under the terms of the settlement, class members can collect a cash payment, which will vary depending on the number of participants and the net settlement fund after deductions. For example, if each eligible class member participates in the settlement and the court approves deductions for attorneys’ fees, litigation costs, settlement administration costs and other expenses, each class member would collect $10.40. Exact payment amounts may be higher or lower than this amount depending on actual participation and deductions.

When class members receive their settlement checks, they have 60 days to cash these funds. Uncashed funds will be used for a cy pres payment to Legal Services of Eastern Michigan, a non-profit organization that helps provide legal aid. No settlement funds will revert to FCA.

The deadline for exclusion and objection is June 27, 2022. 

The final approval hearing for the FCA COBRA notice settlement is scheduled for Aug. 8, 2022.

No claim form is required to receive payments from the settlement; checks will automatically be sent to class members through the mail. Class members can update their address on the settlement website to ensure that they can receive their payment.

Who’s Eligible

The settlement benefits participants and beneficiaries of FCA US LLC health plans subject to Employee Retirement Income Security Act (ERISA) and the Consolidated Omnibus Budget Reconciliation Act — or COBRA — who were sent a COBRA notice but did not elect COBRA coverage. According to the settlement agreement, there are nearly 30,000 class members included under this definition.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

06/27/2022

Case Name

GABRIEL GREEN and VALERIE HALL-GREEN v. FCA US LLC, Case No. 20-cv-13079, in the U.S. District Court for the Eastern District of Michigan, Southern Division

Final Hearing

08/08/2022

Settlement Website

GreenCobraSettlement.com

Claims Administrator

Green v FCA US LLC
c/o Settlement Administrator
P.O. Box 23369
Jacksonville, FL 32241-3369
800-843-3719

Class Counsel

Luis A. Cabassa Esq.
Brandon J. Hill Esq.
WENZEL FENTON CABASSA PA

Defense Counsel

Edward J. Meehan Esq.
Mark C. Nielsen Esq.
Paul J. Rinefierd Esq.
GROOM LAW GROUP CHARTERED