Mom’s Organic Market Signs $400,000 Class Deal Over COBRA Notice

Mom’s Organic Market agreed to pay $402,380 to resolve a proposed class action challenging the COBRA notices it sends to former workers explaining their right to remain on the company health plan.

The deal, announced Monday, is expected to benefit 51 people covered by Mom’s Organic’s health plan who weren’t sent COBRA notices and who didn’t elect to continue their coverage. Class members’ payments will be calculated as a $45 “per diem payment” beginning on the 45th day after they lost health coverage, and they can submit reimbursement claims for the out-of-pocket medical expenses they incurred, according to the settlement ...