Costco has agreed to pay $525,000 to resolve claims that the company failed to refund consumers for cancelled Costco executive membership costs. Under the settlement terms, eligible consumers can recover a free year of a Costco membership or a cash payment of up to $15.
The settlement benefits a Class of consumers who purchased a Costco executive membership and later cancelled this membership but were not refunded the full membership and upgrade fees they originally paid during the applicable Class period.
The applicable Class period depends on a Class Member’s state of residence and that state’s statute of limitation. This period may range from three to 10 years.
Plaintiffs in the Costco executive membership class action lawsuit challenged the wholesale retailer’s practice of denying refunds to consumers who cancelled their memberships. This practice allegedly violated the company’s advertisement that consumers could sign up for a membership with a “Risk-Free 100% Satisfaction Guarantee.”
“Despite this guarantee, Defendant has a practice of refusing to reimburse the full amount of membership fees to certain members who cancel their memberships,” the Costco executive membership class action lawsuit contends. Instead, the company allegedly reimbursed consumers for less than the full value of their membership.
The plaintiffs argued they should have been reimbursed and refunded for their memberships after cancellation based on this prominent guarantee. If this guarantee was not advertised, they would have allegedly chosen not to purchase a membership in the first place.
Last year, a federal judge denied Costco’s bid to dismiss the claims against it. According to U.S. District Judge Ronnie L. White, the plaintiffs stated a “plausible” claim. The judge noted Costco’s questions and arguments against the plaintiffs’ allegations could be investigated during discovery and further argued during summary judgement.
Costco has not admitted any wrongdoing but has agreed to resolve the claims against it with a $525,000 settlement deal. The settlement allows both parties to resolve the claims while also avoiding the costs and risks associated with continued litigation.
Under the terms of the settlement, Class Members can choose between a cash payment of up to $15 or a free one-year gift of a Costco membership. The membership can be used as a regular one-year Costco membership or a yearlong extension of an existing membership.
Exact cash payment amounts will vary depending on the number of claims filed for payments and the net settlement fund after deductions.
In order to benefit from the Costco settlement, Class Member must file a valid claim form by Nov. 24, 2020. Proof of eligibility is not required with claim forms. Instead, personal information such as email addresses, physical addresses and phone numbers will be used to validate claims.
The deadline for exclusion and objection is the same as the claim form deadline — Nov. 24, 2020. The final approval hearing for the Costco executive membership class action settlement is scheduled for Dec. 15, 2020.
Consumers who purchased a Costco executive membership and later cancelled this membership but were not refunded the full membership and upgrade fees they originally paid during the applicable Class period.
The applicable Class period depends on a Class Member’s state of residence and that state’s statute of limitation. This period may range from three years to 10 years.
Either a free year of membership or $15 cash.
Class Members can choose between a cash payment of up to $15 or a free one-year gift of a Costco membership. The membership can be used as a regular one-year Costco membership or a yearlong extension of an existing membership. Exact cash payment amounts will vary depending on the number of claims filed for payments and the net settlement fund after deductions.
Proof of Purchase
Personal information (email addresses, physical addresses, phone numbers, etc.) will be used to validate claims.
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
Pearlstone v. Costco Wholesale Corp., Case No. 4:18-cv-00630-SRC, in the U.S. District Court for the Eastern District of Missouri
Pearlstone v. Costco Settlement Administrator
KCC Class Action Services LLC
P.O. Box 43501
Providence, RI 02940-3501
Paul T. Geske
MCGUIRE LAW P.C
Todd W. Ruskamp
Russell J. Shankland
SHOOK, HARDY & BACON L.L.P
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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.