Starbucks settlement: who gets paid from the $325,000 COBRA fund

What the Starbucks settlement is about

The case is Lubin v. Starbucks Corporation, No. 8:20-cv-01311, in the U.S. District Court for the Middle District of Florida (Tampa Division). The plaintiff says the COBRA notice Starbucks sent people who lost health coverage was deficient under federal COBRA notice rules. COBRA is the law that lets workers and their families keep employer health coverage after a job ends or hours drop, usually by paying the premium themselves, and employers must send a notice explaining the choice.

He sought statutory penalties, a court order, and legal fees. Starbucks denies the allegations, and the court has not ruled on the merits. Settling means both sides agreed to end the case without anyone admitting fault. This is a pure paperwork case: it has nothing to do with Starbucks drinks, apps, gift cards or rewards. If you are searching for a customer payout, this is not it, but our list of open class action settlements may help.

Who qualifies for the Starbucks COBRA settlement

The class is built from Starbucks' own records, not from who applies. You are in it if all of this fits:

• You were sent a COBRA election notice after a qualifying event between July 21, 2016 and January 1, 2023.
• You did not elect continuation coverage.
• You are a Welfare Benefits Plan participant who is not subject to Starbucks' arbitration agreement, or you are a plan beneficiary (for example a covered family member).

The settlement website estimates about 33,800 people are in the class. Most were sent a postcard notice with a claim form attached. Not sure whether you fit? Our guide on who is eligible for a class action settlement explains how classes are defined.

How much you could get from the Starbucks settlement

The fund is $325,000. Administration costs come out first, and the fund is split equally, pro rata, among everyone who files a valid claim. The official site does not give a per-person amount. One secondary source (OpenClassActions) estimates roughly $30 per claimant if a quarter of the class files, and roughly $74 if only 10% do. Those are estimates, not guarantees, and fewer claims means bigger checks.

Starbucks pays class counsel's requested fees and costs separately, subject to court approval, according to that same source, so they should not shrink the pot. Small checks are normal in settlements like this; here is the math.

How to file a Starbucks settlement claim

This one is mail only. There is no online or printable claim form on the settlement website, so you need the form attached to your postcard notice. Filing directly is free; nobody should charge you to do it. Owed Pro is $2 for the first week, then $49 per year — one flat membership. Owed never takes a percentage of any payout. Members file their own claim with the administrator.

1. Find your postcard notice and the claim form attached to it. It has a pre-printed Notice ID.
2. Fill in your name and mailing address, and sign the form. No receipts or documents are required.
3. Mail it to Lubin v Starbucks Corp, c/o Settlement Administrator, PO Box 23309, Jacksonville, FL 32241-3309, postmarked by December 2, 2026.
4. Lost your form or think you qualify but got no notice? Contact the administrator through the official site before the deadline; a phone line of 800-566-0584 is reported by OpenClassActions.

Key Starbucks settlement dates

The claim, opt-out and objection deadlines are all the same day, so pick your path early. Opting out keeps your right to sue Starbucks yourself but means no payment; see when opting out makes sense. Missing the deadline is final, as our guide on missed claim deadlines explains.

Is the Starbucks settlement legit?

Yes. It has an official site at cobranoticeclassaction.com, a federal case number and a court-ordered hearing, and the administrator is American Legal Claims Services, LLC. Real notices come by postcard or mail. Be careful with any text, email or site that asks for your Social Security number, bank login or a fee to "release" your payment; the form asks only for a name, address and signature. More tips in our guide to spotting settlement scams.

What happens after you file

Nothing arrives right away. The judge must grant final approval at the January 6, 2027 hearing, and payments go out only after approval and any appeals are resolved. A payment date has not been announced. If the administrator finds a problem with your form, such as a missing signature, you may get a letter to fix it. Settlement money can be taxable; see whether you pay taxes on settlement money.

This article is general information, not legal advice. Owed is not a law firm or a settlement administrator; the court and administrator decide who qualifies and how much each person gets.

Glossary

COBRA

A federal law that lets people keep employer health coverage for a limited time after losing it, usually by paying the premium.

Pro rata

An equal share of the fund divided among everyone with a valid claim.

Opt out

Asking to be left out of the settlement so you keep the right to sue on your own, in exchange for no payment.

Final approval hearing

The court date when a judge decides whether the settlement is fair and can be paid.

Notice ID

The number printed on your notice or claim form that identifies you as a class member.

FAQ