Starbucks COBRA notice settlement

Starbucks has agreed to pay $325,000 to settle a lawsuit claiming the COBRA notices sent to people leaving its health and vision plans did not explain how to elect continuation coverage. The class is about 33,800 people who were sent a COBRA notice between July 21, 2016 and January 1, 2023 after a qualifying event and did not take up the coverage, so if that describes you, you may be eligible for a share of what is left after administration costs the notice estimates at $75,000. The notice's own examples put a payment at about $30 if a quarter of the class files and about $74 if a tenth does — figures that move with the number of claims. A claim form must be postmarked by December 2, 2026, and filing is free.

Official claim page Official notice

When the money moves

What the official materials say about the payment schedule for this settlement, and what the administrator has published since. Every figure below is linked to the page it was read from.

Status: Payments have not started

Expected

The notice says payments are made only after final approval and after all objections and appeals are resolved, and that checks then go out by first-class mail within 30 days of the settlement account being funded. The final approval hearing is set for January 6, 2027.

Read off the official notice, in its own words. These dates slip — an appeal can move a distribution by a year or more — so treat it as the administrator's plan rather than a schedule.

Source: the official notice ↗

Facts from the official materials

Status: Open
Type: Class-action settlement
Category: Insurance
Defendant / company: Starbucks Corporation
Administrator: American Legal Claim Services, LLC (cobranoticeclassaction.com)
Claim deadline: December 2, 2026
Eligibility period: July 21, 2016 – January 1, 2023
States: See official notice (often nationwide)
Proof: No proof mentioned for the basic option
Possible amount: About $30–$74 (not guaranteed)
Source confidence: high
Last verified: October 20, 2026

Covered products and services

Starbucks Welfare Benefits Plan
Starbucks Health Plan
Starbucks Vision Plan

Raphyr Lubin, et al. v. Starbucks Corporation · 8:20-cv-01311-CEH-TGW · U.S. District Court, Middle District of Florida, Tampa Division

A pro rata share of the net fund: $325,000 less administration costs class counsel estimates at $75,000. The notice's own examples are roughly $30 each if 25% of the class files and roughly $74 if 10% does, so the amount moves with the number of valid claims. Attorneys' fees of $450,000 are payable by Starbucks separately and do not come out of the fund. The claim is made by mailing a completed form to the administrator in Jacksonville, Florida; the notice names no online filing option and asks for no receipts and no notice ID. Checks must be cashed within 60 days.

Important dates

Claim deadline: December 2, 2026
Opt-out deadline: December 2, 2026
Fairness hearing: January 6, 2027

Why this case happened

The complaint says the COBRA notice Starbucks sent to people leaving its health and vision plans did not explain clearly how to elect continuation coverage, left out an election form, and omitted details that federal regulations require. Starbucks denies the allegations and the court has made no finding on the merits. The notice puts the class at about 33,800 people, identified from the company's own records.

Eligibility questions

These questions help you decide whether to read the official notice. They are not a legal determination.

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