Fiat Chrysler Inks $600,000 Class Deal in COBRA Notice Challenge

Fiat Chrysler Automobiles will pay $600,000 to settle claims it sends legally deficient and “ominous” notices informing former workers of their right to keep health coverage after leaving their jobs, according to federal court papers filed Monday in Detroit.

The settlement will provide net payments of about $10.40 to each of 29,798 former FCA US LLC employees who received COBRA notices but didn’t elect COBRA coverage, plaintiff Gabriel Green said in a motion filed in the U.S. District Court for the Eastern District of Michigan. Class members will receive checks in the mail automatically unless they affirmatively opt out, according ...