Costco to Pay $750,000 to Settle COBRA Notice Class Action

Costco Wholesale Corp. signed a $750,000 class settlement to resolve a lawsuit claiming it sends “ominous” and legally deficient notices informing former workers of their right to keep their health insurance coverage, a Florida federal court filing shows.

The deal is slated to provide net payments of about $9.72 to each of 38,818 class members, which is consistent with similar class action settlements in cases alleging violations of COBRA notice requirements, former Costco worker John Baja said in a settlement motion filed Feb. 18 in the U.S. District Court for the Southern District of Florida.

Baja’s eight-month-old lawsuit accuses Costco ...