SunTrust Bank was subject to a class action lawsuit over their COBRA notice. The plaintiffs allege that SunTrust provided them with a deficient COBRA notice that did not adequately inform them how to exercise their right to elect COBRA coverage. The qualifying event letter directed individuals to a general human resources website and telephone number.
In settlement of the suit, SunTrust agreed to revise its COBRA notices to list myHR as the party responsible for administering COBRA and identify the specific location on the myHR website where COBRA information and a COBRA election form could be found. The Notice would also be modified to state that a COBRA election form would be mailed to an individual upon request.
SunTrust also agreed to establish a $290,000 fund to compensate class members and pay court expenses and attorneys’ fees.
All employers should learn a lesson from this suit and review their COBRA notices to make sure process information is clear for continuants.
