Starbucks agreed to a $325,000 settlement fund to resolve claims that its COBRA notices failed federal requirements. About 33,800 class members will divide the net fund in equal shares after costs, fees, and awards. COBRA is the federal law that lets workers and family members keep employer health coverage after job loss or reduced hours.
Raphyr Lubin sued Starbucks in the U.S. District Court for the Middle District of Florida, Tampa Division, in Case No. 8:20-cv-01311-CEH-TGW, according to the official settlement notice.
Official resources:
- Read the official notice from Cobranoticeclassaction — Use this primary source to verify the official announcement.
- Read the official notice from Openclassactions — Use this primary source to verify the official announcement.
Table of Contents
- Why Was Starbucks Sued?
- Who Is Included in the Class?
- How Much Will Each Person Receive?
- What Must You Do by Dec. 2, 2026?
Why Was Starbucks Sued?
The lawsuit alleges the COBRA notice omitted key election information. It allegedly lacked how to elect coverage, the plan name, administrator contact details, where to send premiums, and explanatory statements required by federal rules. The allegations are described in detail on the settlement FAQ page, published by the official settlement site.
That page cites the federal standard at 29 C.F.R. §2590.606-4. Starbucks denies the notice was deficient and denies liability. It maintains the notice complied with COBRA and ERISA and settled to avoid uncertainty, expense, and prolonged litigation.
Who Is Included in the Class?
The class covers participants in Starbucks' U.S. Welfare Benefits Plan for health or vision coverage. It also covers their beneficiaries who received a COBRA notice. Two limits apply.
The person must not have been subject to Starbucks' arbitration agreement. The person must have been sent a COBRA notice between July 21, 2016 and Jan. 1, 2023 and must not have elected continuation coverage, as summarized by OpenClassActions' settlement summary. If the answer to each is yes, you fit the described class.
- Were you a health or vision plan participant or covered beneficiary?
- Did you receive a COBRA notice in that date range?
- Did you skip or forgo continuation coverage?
- Were you outside the arbitration agreement?
How Much Will Each Person Receive?
The gross fund is $325,000 for about 33,800 people. Payments come from what remains after administration costs, attorney fees, and any service award. Shares will be equal.
Before deductions, the math is under $10 per person, so the final check will be smaller after approved deductions. No payment date has been set while the court process continues. The court granted preliminary approval on July 8, 2026, so checks await final approval and any appeals.
What Must You Do by Dec. 2, 2026?
You must mail the claim form that came with your postcard notice. It must be postmarked by Dec. 2, 2026. There is no online claim and no printable form. Use only the mailed form sent to you, according to OpenClassActions.
The same Dec. 2, 2026 deadline applies to exclusion and objection requests. The court will hold the final fairness hearing on Jan. 6, 2027 at 11:00 a.m., according to the official key dates page. Mail early enough for a clear postmark.