Sephora Missouri tax $1.77M class action settlement

Update:

• Top Class Actions readers have reported this settlement paying out $2.17.
• Congratulations to everyone who filed a claim and got paid!

Sephora agreed to pay over $1.77 million to resolve claims it charged illegal taxes on Missouri purchases.

The settlement benefits consumers who made a purchase on Sephora’s website between March 1, 2015, and June 30, 2021, where the product was shipped from a location outside of Missouri to a delivery address within Missouri and where Sephora charged a tax rate higher than Missouri’s vendor’s use tax rate. Consumers who received a full refund are not included in the settlement, but those who received only a partial refund can still participate.

According to the class action lawsuit against the makeup company, Sephora charged Missouri customers more state tax than allowed under state law. This practice allegedly caused financial injury to Missouri shoppers.

Sephora is a beauty retailer with locations around the country. Consumers can make purchases on Sephora’s website.

Sephora hasn’t admitted any wrongdoing but agreed to a $1.77 million class action settlement to resolve these allegations.

Under the terms of the settlement, class members can receive a cash payment based on the amount of tax they were charged on Sephora purchases. 

Exact payments will vary depending on the total amount originally charged and the number of participating class members. Class members will receive a proportional share of the net settlement fund based on these factors.

Class members will automatically receive a PayPal payment to the email account used to make a qualifying Sephora purchase. Class members without a PayPal account can set one up or elect to receive their settlement payment as a check by completing a form on the settlement website.

If any funds remain in the settlement after payments are distributed, the money will be allocated to Legal Services of Eastern Missouri. No residual funds will return to Sephora.

The deadline for exclusion and objection is Feb. 16, 2023.

The final approval hearing for the settlement is scheduled for April 27, 2023.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits. Consumers can update their contact information on the settlement website.

Who’s Eligible

Consumers who made a purchase on Sephora’s website between March 1, 2015, and June 30, 2021, where the product was shipped from outside of Missouri to a delivery address within Missouri and where Sephora charged a tax rate higher than Missouri’s vendor’s use tax rate. 

Consumers who received a full refund are not included in the settlement, but those who received only a partial refund can still participate.

Potential Award

Varies.

Proof of Purchase

N/A

Exlcusion Deadline

02/16/2023

Case Name

Femmer, et al. v. Sephora USA Inc., Case No. 4:20-cv-00676-JMB, in the U.S. District Court for the Eastern District of Missouri

Final Hearing

04/27/2023

Settlement Website

MissouriTaxSettlementSephora.com

Claims Administrator

Sephora Missouri Tax Settlement 
c/o Rust Consulting – 7834
P.O. Box 2599
Faribault, MN 55021-959

Class Counsel

Daniel J Orlowsky 
ORLOWSKY LAW LLC

Adam M Goffstein 
GOFFSTEIN LAW LLC

Defense Counsel

James Spung 
Mohsen Pasha 
HUSCH BLACKWELL LLP

Robert E Shapiro 
Joshua W Mahoney 
Michael J B Pitt 
BARACK FERRAZZANO KIRSCHBAUM & NAGELBERG LLP