Starbucks $775,000 COBRA Notice Class Action Settlement

Individuals who received a COBRA notice from Starbucks between July 21, 2016, and Jan. 1, 2023, after a qualifying event and did not elect continuation coverage may qualify to submit a claim for a cash payment from a class action settlement. The settlement class includes approximately 33,800 current and former employees and other individuals.

Starbucks Corp. agreed to pay approximately $775,000 to settle a class action lawsuit alleging its COBRA notices did not meet federal requirements for clarity and completeness.

Who can file a claim for a Starbucks settlement payout?

Class members must meet the following criteria:

• They were a participant or beneficiary in Starbucks welfare benefits plan, including the health plan and vision plan, in the United States.
• They received a COBRA notice from Starbucks or its third-party administrator between July 21, 2016, and Jan. 1, 2023, as a result of a qualifying event, such as employment termination or a reduction in work hours.
• They did not elect COBRA continuation coverage after receiving the notice.
• They are not subject to Starbucks arbitration agreement.

Who is excluded from the class?

Individuals who elected COBRA continuation after receiving a notice and individuals subject to a Starbucks arbitration agreement cannot participate in the settlement.

How much are settlement payments?

Cash payment: The settlement administrator will deduct $75,000 in settlement administration costs from the $325,000 class member payment fund. Class members can submit a claim to receive a receive a pro rata cash payment from the remaining $250,000. The administrator will determine the final payment amount by the number of claims filed. The estimated payment is between $30 and $74.

How to claim a class action rebate

To receive a settlement payment, class members can complete the claim form they received with their official settlement notice and mail it to the settlement administrator. There is no online claim submission option available.

Settlement administrator's mailing address: Lubin v. Starbucks Corp., c/o Settlement Administrator, P.O. Box 23309, Jacksonville, FL 32241-3309

Class members must postmark all completed claim forms no later than Dec. 2, 2026.

Payout options

• Paper check mailed to the address on file

Settlement fund breakdown

The $775,000 settlement fund will include:

• Settlement administration costs: Estimated $75,000
• Attorneys’ fees and costs: $450,000
• Payments to eligible claimants: Estimated $250,000

Important dates

• Claim deadline: Dec. 2, 2026
• Exclusion deadline: Dec. 2, 2026
• Final fairness hearing: Jan. 6, 2027

When is the Starbucks COBRA notice settlement payout date?

The settlement administrator will mail payments to approved claimants within 30 days after Starbucks funds the settlement account, which will occur after the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Starbucks sent COBRA notices to former employees that did not meet federal requirements for clarity and completeness. The plaintiff claimed the notices lack clear instructions on how to elect continuation coverage and did not include the plan administrator’s contact information, the plan name, its payment address and other required details.

Starbucks denied the allegations but agreed to settle to avoid the risk and expense of further litigation and a possible trial.

Sources

1. Class notice
2. Settlement agreement
3. Settlement website FAQ page