SHAWN RIGNEY and KYLE ADAMS v. TARGET CORPORATION Settlement

Case No.: 8:19-cv-01432 in United States District Court for the Middle District of Florida (Tampa Division)

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NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND HEARING

 

This Notice of Proposed Class Action Settlement and Hearing provides important information regarding your right to participate in or to opt out of a proposed settlement in a class action lawsuit. Named Plaintiffs, Shawn Rigney and Kyle Adams (“Plaintiffs”), filed a lawsuit against Defendant Target Corporation (“Defendant” or “Target”) in which they allege that the COBRA Notice they received from or on behalf of Defendant was deficient.  Target disputes the allegations.  That case is pending in the U.S. District Court, Middle District of Florida (Tampa Division).  As summary of the claims asserted in the lawsuit and the proposed settlement follows.

  • The notice at issue is referred to as a “COBRA” notice and the continuation of health insurance coverage after separation of employment is called “COBRA continuation coverage,” after the Consolidated Omnibus Budget Reconciliation Act of 1985. That Act generally requires an employer to send a COBRA notice to employees within certain time periods certain “qualifying events,” which are defined in the Act, one of which is the end of an employee’s employment.The COBRA notice is designed to provide former employees and their dependents who were covered under employer sponsored group healthcare plans with information and details regarding their right to continue their healthcare coverage and the terms and conditions of that COBRA continuation coverage. 29 U.S.C. §1166(a) (2), (a)(4), (c).
  • The lawsuit generally alleges Defendant provided Plaintiffs and other class members with a deficient COBRA Notice.More specifically, Plaintiffs asserted that Defendant’s COBRA Notice did not adequately inform them of how to exercise their rights to elect COBRA coverage.In violation of 29 C.F.R. § 2590.606–4(b)(4) et seq. the Notice failed to: (i) adequately explain the procedures for electing coverage; (ii) properly include an address indicating where COBRA payments should be mailed; (iii) identify the Plan Administrator; and, finally, (iv) was not written in a manner calculated to be understood by the average plan participant.  As a result of the alleged violations in the Complaint, Plaintiffs sought statutory penalties, injunctive relief, attorneys’ fees, costs and expenses on behalf of themselves and all others similarly situated. 
  • Defendant denies that its COBRA Notice was deficient and denies that it has any liability to Plaintiffs whatsoever.The parties have, however, agreed to resolve the lawsuit through a Court-supervised settlement.
  • Plaintiffs propose to settle this dispute on behalf of themselves and all other former employees who received the same COBRA Notice because they participated in the group healthcare plans sponsored by Defendant.The class definitions is described below as follows:“the Target Corporation Employee Umbrella Welfare Benefit Plan .”(referenced herein as the “Settlement Class”).
  • Membership in the Settlement Class will be determined based upon Defendant’s records reflecting who received the specific COBRA Notice at issue.It is estimated that the Settlement Class is comprised of approximately 92,000 potential members.
  • You received notice of this settlement by mail which directed you to this website because Defendant’s records indicate that you are eligible to receive benefits from this class action settlement.
  • Your rights and options—and the deadlines to exercise them—are explained in this Notice. Here is a brief summary of your rights and options. 

 

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

Do Nothing

If you do nothing and the Court approves this settlement, you will receive a settlement payment.  As a member of the Settlement Class, you will release Defendant from any potential liability regarding the COBRA notice and the issues raised in this lawsuit.

Ask to be Excluded by

November 17, 2020

If you do not want to be included in the case and the settlement, you must take action to exclude yourself.  This is called “opting out.” To opt out, you must state in writing that you have elected to opt out of the case and the settlement, and send your written notice to the Settlement Administrator by November 17, 2020.  If you elect to opt out, you may pursue your own action against Defendant for the claims raised in this case if you choose to do so.

Object by November 17, 2020

You may write to the Court about why you don’t like the settlement, if you object to any of its terms. You may not file an objection if you opt out of the settlement.

Go to a Hearing on November 19, 2020

If you wish to be heard, you may attend the Final Approval Hearing and ask to speak in Court about the fairness of the settlement.  If you opt out, you may not present your opinions regarding the settlement at the Final Approval Hearing.

 

The Court still has to decide whether to approve this settlement, which may take some time.