ALEX McNAMARA v BRENNTAG MID-SOUTH, INC.

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND HEARING

A court authorized this Notice.  This is not a solicitation from a lawyer.

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 Plaintiff, Alex McNamara (“Plaintiff”), filed a lawsuit against Defendant Brenntag Mid-South, Inc. (“Defendant” or “Brenntag Mid-South”) in which she alleges that the COBRA notice she received from or on behalf of Defendant (the “COBRA Notice”) was deficient.  Defendant disputes the allegations and has asserted its Notice complied with all applicable laws.  That case is pending in the U.S. District Court, Middle District of Florida (Tampa Division) and the judge has not made any determination about who is right or wrong in the case.  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 the end of employment is called “COBRA continuation coverage,” after the Consolidated Omnibus Budget Reconciliation Act of 1985. That Act requires an employer to send a COBRA notice to employees after the end of a person’s employment and the loss of health care coverage (and also under certain other conditions).  The COBRA notice is designed to provide former employees 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.  See 29 U.S.C. §1166(a)(2), (a)(4), (c).

• The lawsuit generally alleges Defendant provided Plaintiff and other putative 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.  Plaintiff asserted that, in alleged violation of 29 C.F.R. § 2590.606–4(b)(4), the Notice failed to: (i) include a date certain on which continuation coverage ends; (ii) identify the Plan Administrator; and, finally, (iii) be written in a manner calculated to be understood by the average plan participant. As a result of the alleged violations in the Complaint, Plaintiff sought statutory penalties, injunctive relief, attorneys’ fees, costs and expenses on behalf of herself and all others similarly situated. 

• Defendant denies that its COBRA Notice was deficient in any manner and denies that it has any liability to Plaintiff whatsoever.  Rather, Defendant has asserted that its COBRA Notice provided recipients with a clear and comprehensive description of potential COBRA benefits, including how to elect COBRA coverage and whom to contact with questions, and that this Notice complied with any and all relevant laws, including COBRA and ERISA.  Furthermore, had the parties proceeded in the litigation, Defendant further denies that the matter would have proceeded on a class action basis. 

• At this point in the case, the presiding judge has not made any determination about who is right or wrong.  Rather, instead of proceeding with potentially years of litigation with uncertain outcomes, the parties have agreed to resolve the lawsuit through a Court-supervised settlement to avoid further cost and uncertainty.

• Plaintiff proposed to settle this dispute on behalf of herself and all other former employees who received the same COBRA Notice in the form at issue in this action from Defendant, or its parents, subsidiaries, and certain other related entities, including Brenntag Southwest, Brenntag Pacific, and Brenntag North America (together, “Brenntag”), and who did not elect COBRA coverage.  The settlement class is defined  as follows: All participants and beneficiaries in the Brenntag health plans (including the Brenntag North America, Inc., Health & Welfare Plan, the Brenntag Pacific, Inc. Welfare Benefits Plan, and any other relevant Brenntag health plan providing medical, vision, or dental benefits) who were sent a COBRA notice in the form at issue in this action by Brenntag between March 17, 2017 and November 2, 2021 as a result of a qualifying event, as determined by Defendant, who did not elect COBRA (the “Settlement Class”).

• Membership in the Settlement Class will be determined based upon records reflecting who was mailed the specific COBRA Notice at issue.  It is estimated that the Settlement Class is comprised of 906 potential members.

• You received notice of this settlement by mail because records indicate that you are eligible to receive benefits from this proposed 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 January 28, 2022	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 January 28, 2022. 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 January 28, 2022	You may write to the Court about why you don’t like the settlement, if you object to any of its terms. To object to the settlement, you must: (i) state your objection with specificity; (ii) state whether your objection pertains only to yourself or some or all of the Settlement Class; and (iii) return your objection by January 28, 2022. You may not file an objection if you opt out of the settlement.
  Go to a Hearing on February 16, 2022	If you wish, you may attend the Final Approval Hearing and ask to speak in person to the Court about the fairness of the settlement. But you are not required to attend the hearing, even if you have filed an objection. 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, as explained below.The Court still has to decide whether to approve this settlement, which may take some time, as explained below.