Starbucks Settles COBRA Notice Suit After Losing Arbitration Bid

Starbucks Corp. agreed to settle a proposed class action challenging the health coverage notices it sends to former employees.

The parties are finalizing settlement paperwork and expect to submit the deal for court approval by Feb. 19, they told Judge Charlene Edwards Honeywell in a settlement notice filed Tuesday in the US District Court for the Middle District of Florida. Details about the agreement aren’t publicly available.

• The lawsuit accused Starbucks of violating the Consolidated Omnibus Budget Reconciliation Act, which is the federal law requiring companies with 20 or more employees to allow workers to continue their health coverage after ...