Starbucks $775,000 COBRA Notice Class Action Settlement, Who Qualifies and How to Claim

Starbucks Corporation has agreed to settle a class action over allegedly deficient COBRA health insurance notices. The deal is often described as $775,000, but there is an important distinction: $325,000 is the settlement fund for class members, and Starbucks is separately paying up to $450,000 in attorneys’ fees and costs, subject to court approval. That is how the total reaches about $775,000.

The lawsuit alleges Starbucks sent former employees and their health plan beneficiaries COBRA notices that did not adequately explain how to continue their coverage after a qualifying event, such as a job loss. Starbucks denies wrongdoing, and the court has not decided who is right.

CLAIM DEADLINE: December 2, 2026 (postmarked). You must mail a paper claim form to get paid. The opt-out and objection deadline is the same day. If you do nothing, you get no check.

If you were sent a Starbucks COBRA notice between July 21, 2016 and January 1, 2023 and did not elect COBRA coverage, you may qualify for an estimated payment of about $30 to $74. Current status (as of October 15, 2026): The court granted preliminary approval on July 8, 2026. Final approval is pending, with a hearing on January 6, 2027.

Starbucks COBRA Notice Settlement Quick Facts

Detail	Information
Total proposed deal (fund plus fees and costs)	About $775,000
Settlement fund for class members	$325,000 (administration costs come out of it)
Attorneys’ fees and costs	$450,000, paid separately by Starbucks, subject to court approval
Estimated net fund for claimants	About $250,000
Estimated individual payment	About $30 to $74, depending on the number of valid claims
Defendant	Starbucks Corporation
Named plaintiff	Raphyr Lubin
Case name	Lubin v. Starbucks Corporation
Case number	8:20-cv-01311-CEH-TGW
Court	U.S. District Court, Middle District of Florida, Tampa Division
Laws involved	ERISA and its COBRA continuation coverage provisions
Estimated class size	About 33,800 people
Claim form	Required, by mail only
Claim, opt-out and objection deadline	December 2, 2026 (postmarked)
Final approval hearing	January 6, 2027, 11:00 a.m., Courtroom 13A, Tampa
Settlement administrator	American Legal Claims Services, LLC
Official website	cobranoticeclassaction.com

Who Qualifies for the Starbucks COBRA Notice Settlement?

You are in the settlement class if all of these apply:

• You were a participant or beneficiary in the Starbucks Welfare Benefits Plan, including the Health Plan and Vision Plan, in the United States.
• Starbucks or its third-party administrator sent you a COBRA notice between July 21, 2016 and January 1, 2023 because of a qualifying event.
• You did not elect COBRA continuation coverage.
• You are not subject to Starbucks’ arbitration agreement.

Starbucks’ records decide who is in the class. If you received a notice in the mail pointing you to the settlement website, those records say you may be eligible. If you are unsure, contact the administrator at 800-566-0584 or [email protected].

Do You Have to Be a Former Starbucks Employee?

No. The class includes beneficiaries as well as plan participants, so an employee’s spouse or other covered family member who received a COBRA notice may qualify. The named plaintiff, Raphyr Lubin, was the husband of a former Starbucks employee.

What If I Signed a Starbucks Arbitration Agreement?

The class excludes participants subject to Starbucks’ arbitration agreement. Class membership is based on Starbucks’ records, so contact the administrator if you are unsure.

What Did the Starbucks COBRA Lawsuit Allege?

COBRA, the Consolidated Omnibus Budget Reconciliation Act, generally gives eligible employees and family members the right to temporarily continue employer-sponsored group health coverage after events such as job loss, reduced hours or divorce. The plan must give an election notice explaining those rights.

Lubin alleged Starbucks’ notice lacked or inadequately provided:

• a clear explanation of how to enroll in continuation coverage, and an election form
• the name, address and telephone number of the party responsible for plan administration
• the name of the health plan
• the address for paying premiums
• other explanatory information required by federal regulations

A person who loses employer coverage may have limited time to elect COBRA, so a confusing or incomplete notice can make it harder to understand the options, deadlines and premium process.

These are allegations, not findings. Starbucks says its notices complied with the law and that it settled to avoid the cost and uncertainty of more litigation. Under the settlement agreement, the plaintiff agrees that Starbucks’ revised COBRA notice, dated January 1, 2023, resolves the alleged deficiencies going forward, which is why the class period ends that day.

Which Laws Apply to the Starbucks COBRA Notice Settlement?

• COBRA continuation coverage, ERISA Title I, Part 6, 29 U.S.C. §§ 1161–1169. Requires most group health plans of employers with 20 or more employees to offer continuation coverage after a qualifying event. Qualified beneficiaries generally have at least 60 days to elect coverage (29 U.S.C. § 1165), and coverage can last up to 18 months in many cases (29 U.S.C. § 1162).
• Notice duty, 29 U.S.C. § 1166. Requires employers and plan administrators to give covered people notice of their rights after a qualifying event. The lawsuit cites this section.
• Content of the election notice, 29 C.F.R. § 2590.606-4(b)(4). The Department of Labor regulation that lists what the election notice must say, including how to elect coverage, who administers the plan, and how and where to pay premiums. The Department of Labor publishes a model election notice. The lawsuit cites this regulation.
• Penalties for notice failures, 29 U.S.C. § 1132(c)(1). A court may, in its discretion, order a plan administrator who fails to provide a required notice to pay a participant or beneficiary up to $110 per day. 29 U.S.C. § 1132(a)(1)(A) lets participants and beneficiaries sue to enforce it. Whether a penalty is awarded is up to the court, and no court has made that decision here.
• Internal Revenue Code § 4980B. The tax-law counterpart of COBRA, which can impose an excise tax on employers whose group health plans fail to meet continuation coverage rules.
• Federal Rule of Civil Procedure 23. Governs class actions and requires court approval of class settlements under Rule 23(e). The Class Action Fairness Act’s notice provision, 28 U.S.C. § 1715, also generally requires notice of the proposed settlement to federal and state officials.
• Federal Arbitration Act, 9 U.S.C. § 1 et seq. Governs Starbucks’ attempt to force Lubin into arbitration. The Eleventh Circuit affirmed the denial of that request on December 16, 2024, which is why the class excludes people who are subject to an arbitration agreement.

These laws are background, not findings. The court has not ruled that Starbucks violated any of them.

How Much Money Could Starbucks COBRA Settlement Claimants Receive?

The settlement fund is $325,000. Court-approved administration costs, estimated at $75,000, come out first, leaving about $250,000 for claimants. Every person who files a timely, valid claim and has not opted out receives an equal pro rata share, so the amount depends on how many people claim.

Share of class that files a valid claim	Estimated claimants	Approximate payment per claimant
10%	3,380	About $74
25%	8,450	About $30

These are estimates from the notice, not guarantees. A higher claim rate means the same fund is divided among more people. No money goes back to Starbucks. Money from uncashed checks goes to Bay Area Legal Services, or another court-approved recipient, not to Starbucks.

Why Does the Headline Say $775,000 if the Class Fund Is $325,000?

Payment	Amount	Who gets it
Settlement fund	$325,000	Class members, after administration costs
Attorneys’ fees and litigation costs	Up to $450,000	Class counsel, paid separately by Starbucks, subject to court approval
Combined total	About $775,000

The $450,000 is not deducted from the class fund. The $775,000 is not the amount available to former employees and beneficiaries. The settlement papers do not state a combined total. The $775,000 is the sum of the two payments, and the fee portion is still subject to court approval.

How to File a Starbucks COBRA Settlement Claim

You must submit a valid claim form to receive money. The form must be postmarked by December 2, 2026. The official instructions specify mail submission, and the website does not list an online claim option.

1. Locate your claim form. The administrator mailed notices and claim forms to people in Starbucks’ records. If you lost yours or believe you qualify but did not receive one, call 800-566-0584 or email [email protected].
   
2. Complete the form. Make sure your name and mailing address are accurate, and complete the certification and signature. Simply receiving a notice does not produce a payment.
   
3. Mail it by December 2, 2026 to:
   
   Lubin v. Starbucks Corp. c/o Settlement Administrator P.O. Box 23309 Jacksonville, FL 32241-3309
   
4. Keep a copy of the form and proof of mailing.
   

If your form is defective, for example unsigned, the administrator is supposed to mail you a letter and give you a chance to fix it before rejecting it. Filing is free, so do not pay anyone to submit it.

Your Options: Claim, Opt Out, Object or Do Nothing

Option	What to do	Deadline
File a claim	Mail the completed, signed claim form	Postmarked by December 2, 2026
Opt out	Mail a signed letter with the case name and number, your name, address, phone number and email	Postmarked by December 2, 2026
Object	File a written objection with the court and mail a copy to the administrator	Postmarked by December 2, 2026
Do nothing	No payment, and you give up the covered COBRA notice claims	None
Attend the hearing	Optional; you may ask to speak	January 6, 2027

How to Opt Out of the Starbucks COBRA Settlement

Send a signed request by first-class mail, postmarked by December 2, 2026, identifying Lubin v. Starbucks Corporation, Case No. 8:20-cv-01311-CEH-TGW, with your name, mailing address, telephone number and email address. Mail it to the administrator at the P.O. box above. You cannot opt out by phone. If you opt out, you get no money and keep any individual claim, and Starbucks keeps its defenses.

How to Object to the Starbucks COBRA Settlement

Your objection must explain your grounds and include the information the notice requires. File it with the court at U.S. District Court, Middle District of Florida, Tampa Division, 801 N. Florida Ave., Tampa, FL 33602, and mail a copy to the administrator, by December 2, 2026. You cannot object if you opt out. You do not have to attend the hearing for a timely written objection to be considered. If you want to speak, say so in your objection.

What Am I Giving Up in the Starbucks COBRA Settlement?

If the court grants final approval, everyone who has not opted out releases Starbucks and its COBRA administrators and notice providers, including Alight Solutions, from claims related to the COBRA notice. That is true whether or not you file a claim or get paid. If you opt out, you keep any individual claim.

When Will Starbucks COBRA Settlement Payments Arrive?

The final approval hearing is January 6, 2027, at 11:00 a.m. before the U.S. District Court in Tampa, Courtroom 13A. The judge will decide whether the settlement is fair, reasonable and adequate and will consider the fee request. The hearing could be postponed or held remotely, so check the website.

If the court grants final approval and any appeals are resolved, the administrator mails checks to claimants with valid claims within 30 days after Starbucks funds the settlement account. The agreement gives Starbucks 20 business days after the claims period ends and the settlement takes effect to fund it. Each check must be cashed within 60 days of the date printed on it. No payment date is guaranteed.

The deal can fall apart. If the court refuses to certify the class or approve the settlement after one more attempt, or if the final approval order is materially changed on appeal, the case goes back to where it stood before the settlement.

Date note: The website’s Key Dates page appears to list the hearing year as 2026. The long-form notice, FAQ and the December 2, 2026 deadline all point to January 6, 2027, which is the date used in this article.

Starbucks COBRA Settlement Timeline

Date	Event
June 8, 2020	Ariel Torres files the original putative class action
July 21, 2020	First Amended Complaint filed, with Raphyr Lubin joining; class period begins July 21, 2016
July 16, 2021	First mediation ends without a deal
January 1, 2023	Starbucks’ revised COBRA notice takes effect; class period ends
December 16, 2024	Eleventh Circuit affirms denial of Starbucks’ motion to compel Lubin to arbitrate
August 8, 2025	Second mediation ends in an impasse; a deal follows through the mediator
October 17, 2025	Complaint amended again; Starbucks moves to dismiss on October 31, 2025
May 6, 2026	Parties file an amended motion for preliminary approval
July 8, 2026	Court grants preliminary approval and authorizes notice
December 2, 2026	Claim, opt-out and objection deadline
January 6, 2027, 11:00 a.m.	Final approval hearing
Not set	Payment date

Who Are the Lawyers for the Starbucks COBRA Class?

The court appointed Wenzel Fenton Cabassa, P.A. (Luis A. Cabassa, Brandon J. Hill and Amanda E. Heystek) and Justice Litigation Associates, PLLC (Chad A. Justice). You do not pay them directly. Their $450,000 request is paid by Starbucks, not from the class fund.

Related Reading on AllAboutLawyer

For another employment-related class action involving workers, read $9.5M FedEx Security Screening Pay Settlement, Did You Work at a Connecticut Facility?. It concerns alleged unpaid work time, not COBRA notices, and has separate eligibility rules. For more on how class settlements are approved and paid, see Class Action Lawyer, Role, Cost, Settlements, and How Class Action Lawsuits Work.

Starbucks COBRA Settlement FAQ

Is the Starbucks $775,000 COBRA settlement approved?

It has preliminary approval, granted July 8, 2026. Final approval is pending, with a hearing on January 6, 2027. The $775,000 combines the $325,000 class fund and up to $450,000 in fees and costs.

Do I have to file a claim to get money?

Yes. You must mail a claim form postmarked by December 2, 2026. If you do not file, you get no check but are still bound by the release.

How much will I get from the Starbucks COBRA settlement?

The notice estimates about $30 if 25% of the 33,800 potential class members file valid claims, or about $74 if 10% file. The actual amount depends on the number of approved claims.

What was wrong with Starbucks’ COBRA notice, according to the lawsuit?

Lubin alleged it did not clearly explain how to elect coverage and left out required information such as an election form and plan administrator contact details. Starbucks denies the notice was deficient.

Does it matter whether I actually signed up for COBRA?

Yes. The class only includes people who were sent a COBRA notice and did not elect continuation coverage.

Do I have to be a former Starbucks employee?

No. Qualifying beneficiaries, such as spouses, may be included.

What is the opt-out deadline?

Your letter must be postmarked by December 2, 2026. You cannot opt out by phone.

Does the settlement prove Starbucks violated COBRA?

No. Starbucks denies wrongdoing, and the court has not found it liable.

How do I update my address?

Use the Update Address page on the settlement website with your Notice ID and PIN, email the administrator with “Change of Address” in the subject line, or mail the change to the Jacksonville P.O. box.

Official Starbucks COBRA Settlement Documents and Contact Information

• Official settlement website
• Long-form settlement notice
• Settlement agreement
• Preliminary approval order
• Frequently asked questions
• Important court documents
• Key dates

Settlement administrator: American Legal Claims Services, LLC, 800-566-0584, [email protected]

Mailing address: Lubin v. Starbucks Corp., c/o Settlement Administrator, P.O. Box 23309, Jacksonville, FL 32241-3309

Sources Used in This Article

• Official settlement website (Case Home, Key Dates, FAQ, Important Court Documents), cobranoticeclassaction.com
• Long Form Class Notice, Lubin v. Starbucks Corp., No. 8:20-cv-01311-CEH-TGW (M.D. Fla.)
• Class Action Settlement Agreement and Release, same case
• Preliminary approval order, July 8, 2026
• Eleventh Circuit decision, December 16, 2024
• 29 U.S.C. §§ 1132, 1161–1169; 29 C.F.R. § 2590.606-4; 26 U.S.C. § 4980B; Fed. R. Civ. P. 23; 28 U.S.C. § 1715; 9 U.S.C. § 1 et seq.

Disclaimer: This article is general legal information, not legal advice. I am not a practicing attorney. Starbucks denies wrongdoing, and the settlement is subject to final court approval. Terms and deadlines may change.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the official settlement website (cobranoticeclassaction.com), the Long Form Class Notice, the Class Action Settlement Agreement and Release and the July 8, 2026 preliminary approval order, as of October 15, 2026. Last Updated: October 15, 2026.