Costco’s COBRA Health Insurance Notice Deal Clears First Hurdle

Costco Wholesale Corp. received early approval for a $750,000 class settlement to resolve allegations that it sends “ominous” and legally deficient notices informing former workers of their right to keep their health insurance coverage, a Florida federal court ruling shows.

The deal—which would be sizeable among recent similar agreements in this area—is expected to provide net payments of about $9.72 to each of 38,818 class members, according to former Costco worker John Baja’s settlement motion. Judge Raag Singhal of the US District Court for the Southern District of Florida granted preliminary approval to the deal in an order docketed Wednesday. ...