Enhanced Recovery Settles Class Action Over COBRA Notice Failure

Enhanced Recovery Co. will pay nearly $140,000 to settle a class action claiming it failed to send timely notices to former workers explaining their rights under COBRA to remain on the company health plan, the parties told a federal judge in Florida.

The Nov. 1 deal provides 50 class members with gross payments of $1,305 each, representing a penalty of about $41 per day for the 32 days in which the company’s COBRA notices weren’t timely distributed. The remaining money is earmarked for administrative costs and attorneys’ fees, according to settlement papers filed with Judge Roy B. Dalton Jr. in ...