At A Glance
- Who Does the Regions Bank Tobacco Surcharge Lawsuit Affect?
Regions Bank and Regions Financial Corporation health plan participants who paid the $390 a year surcharge for using tobacco or vapes. The lawsuit is a proposed class action, so it could affect anyone who paid that surcharge if a class is certified.
- What Is Going On with the Regions Bank Tobacco Surcharge Lawsuit?
On November 2, 2026, a Regions employee sued the bank, alleging its health plan charged tobacco and vape users an extra $390 a year without offering or disclosing a lawful alternative, in violation of ERISA wellness program rules.
- What Could I Get From the Regions Bank Tobacco Surcharge Lawsuit?
Nothing right now. No class has been certified and there is no settlement or claim form. If the case settles or wins, affected plan members would learn how to recover surcharges through a future claims process.
- Can I File a Regions Bank Tobacco Surcharge Claim?
There is nothing to file yet. If you paid the surcharge, keep your pay stubs and enrollment materials. In most class actions you are included automatically if a class is certified later.
- How Much Does a Lawyer Cost?
Class action lawyers usually work on contingency, so class members pay nothing up front. If a case settles or wins, the court approves the fee, which comes out of the recovery.
Regions Bank Faces Class Action Over $390 Tobacco Surcharge in Health Plan
This lawsuit is a proposed class action over the tobacco and vape surcharge Regions Bank charges on its employee health plan. A current plan participant says Regions’ enrollment guide showed a higher rate for tobacco users but never described a lawful alternative that would let them avoid it, which the complaint says violates federal ERISA wellness program rules.
The case, Carswell v. Regions Financial Corporation, was filed November 2, 2026 in the U.S. District Court for the Middle District of Florida. Our newsroom covered the filing in Regions Bank sued over $390 tobacco surcharge. This page tracks the case as it moves forward.
Regions has not responded in court, and the allegations have not been proven.
Important lawsuit update
As of November 4, 2026, this case is at the complaint stage. No class has been certified, and there is no settlement or claim form. Regions has not yet responded in court. Any message asking you to pay a fee to join a Regions settlement is not official. Learn the warning signs in our guide to class action settlement scams.
Who Is Being Sued in the Regions Bank Tobacco Surcharge Lawsuit?
The defendants are Regions Financial Corporation, Regions Bank and 20 unnamed John Doe defendants. The case was filed in the U.S. District Court for the Middle District of Florida.
The parties include:
- Regions Financial Corporation and Regions Bank: The defendants, named over the health plan's tobacco surcharge.
- Dawn Carswell: The named plaintiff, a Regions employee who filed the case November 2, 2026.
- Milberg PLLC: Law firm representing the plaintiff.
- Proposed class members: Regions health plan participants who paid the tobacco or vape surcharge.
Who Could Be Covered by the Regions Bank Lawsuit?
The proposed class covers Regions health plan participants who paid the tobacco or vape surcharge. No class has been certified, so whether you are covered depends on how the court defines the class later in the case.
What Circumstances Might Be Relevant?
- You were enrolled in a Regions Bank employee health plan.
- You paid the $390 a year tobacco or vape surcharge on your premiums.
- Your enrollment guide did not describe a cessation program or other way to avoid the surcharge.
- You were not told that a doctor's recommendations would be accommodated as an alternative.
You do not need to sign up or file anything to stay in a proposed class. If a court certifies a class or a settlement is reached, official notice will explain your options. Our guide on what to do when you get a class action notice explains that step.
What Is the Regions Bank Lawsuit About?
Federal ERISA wellness program rules, at 29 CFR 2590.702, let employer health plans charge tobacco users up to 50% more, but only through a program that offers a reasonable alternative standard, makes the full reward available to anyone who meets it, and describes the alternative in plan materials with contact details. The complaint says Regions’ enrollment guide listed two rate tables but never mentioned an alternative.
Regions is one of more than 80 employers facing similar tobacco surcharge suits, with more than 30 filed since January 2026. Courts are split: judges dismissed cases against Target and Campbell Soup in July 2026, finding ERISA does not require retroactive refunds, while a Missouri federal judge granted summary judgment to workers against Compass Group USA in October 2026. Appeals are pending in the First, Second, Sixth and Seventh Circuits.
One earlier Virginia tobacco surcharge case ended with a $4.7 million class settlement that received final approval in May 2026.
What Laws Are Involved?
The case relies on the Employee Retirement Income Security Act and the Labor Department’s wellness program regulation.
The key laws include:
- ERISA: Sets minimum standards for employer sponsored health and benefit plans.
- 29 CFR 2590.702: The Labor Department rule setting what a wellness program must do to charge a tobacco surcharge.
- ERISA's claims procedures: Govern how plan members can challenge decisions about benefits and premiums.
How Do Other Tobacco Surcharge Cases Compare?
Regions is one of more than 80 employers facing similar suits. See our list of open class action lawsuits and mass torts for other active cases.
Earlier outcomes are not a prediction for the Regions case. See how class action settlements work for the usual path from complaint to payment.
Paid the Regions tobacco surcharge?
Keep your records now. Save your pay stubs and enrollment guides so you can show what you paid and what you were told, in case a class is certified later.
What Can Regions Employees Do Right Now?
There is nothing to sign up for or claim at this stage.
- Keep pay stubs that show the tobacco surcharge deduction.
- Save your enrollment guide and any wellness program notices.
- Watch for updates on class certification in this case.
- Do not pay anyone who offers to register you for a Regions settlement.
- Report scam emails to the FTC at ReportFraud.ftc.gov.
Questions to Ask Before Hiring an Attorney
- Does my Regions enrollment history support this type of claim?
- Would an individual ERISA claim be worth more than staying in a class?
- What records should I keep before they are no longer available?
- How have similar tobacco surcharge cases been decided in my circuit?
What Happens Next in the Regions Bank Case?
Regions had not responded in court as of publication. Appeals in similar tobacco surcharge cases are pending in the First, Second, Sixth and Seventh Circuits, and rulings in those cases in 2027 could shape how the Regions case proceeds. We will update this page as Regions responds or the court rules.
Regions employees may wish to:
- Bookmark this page. We update it when Regions responds or the court rules.
- Read our news story on the Regions Bank lawsuit filing for the full details.
- Learn what a class action lawsuit is and how class members are notified.
- Check open class action settlements for claims you can file today.
Is There a Filing Deadline for the Regions Bank Lawsuit?
There is no public claim deadline, because there is no settlement or claim form. These are the dates that matter so far:
Key Dates in the Regions Bank Case:
- July 2026: Courts dismiss similar tobacco surcharge cases against Target and Campbell Soup.
- November 2, 2026: Carswell v. Regions Financial Corporation is filed in Florida federal court.
- October 2026: A Missouri federal judge grants summary judgment to workers in a similar case against Compass Group USA.
If you want to bring your own ERISA claim instead of waiting, time limits can be short and depend on your plan’s terms. A lawyer can tell you which deadline applies. Our guide on how to sue a company covers the basics.
Case: Carswell v. Regions Financial Corporation, et al., No. 3:26-cv-03016 (M.D. Fla.)
Filed: November 2, 2026
Status: Complaint filed. No class certified and nothing to claim
Source: LegalWorldHub news coverage
Regions Bank Tobacco Surcharge FAQs
No. The case was filed November 2, 2026. No class has been certified and no settlement or claim form exists.
Yes, up to 50% of the cost of coverage, but only through a wellness program that offers a reasonable alternative, makes the full reward available and discloses the alternative in plan materials.
The U.S. District Court for the Middle District of Florida, under case number 3:26-cv-03016.
Keep your pay stubs, enrollment guides and any wellness program notices. There is nothing to file yet, and you would be notified if a class is certified or a settlement is reached.