Costco Warehouse

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.

Who’s Eligible

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.

Potential Award

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.

Claim Form

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

11/24/2020

Case Name

Pearlstone v. Costco Wholesale Corp., Case No. 4:18-cv-00630-SRC, in the U.S. District Court for the Eastern District of Missouri

Final Hearing

12/15/2020

Settlement Website
Claims Administrator

Pearlstone v. Costco Settlement Administrator
KCC Class Action Services LLC
P.O. Box 43501
Providence, RI 02940-3501
admin@cwcexecfeerefundclassaction.com
(312) 893-7002

Class Counsel

Myles McGuire
Paul T. Geske
Brendan Duffner
MCGUIRE LAW P.C

Defense Counsel

Todd W. Ruskamp
Russell J. Shankland
SHOOK, HARDY & BACON L.L.P

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

  • This field is for validation purposes and should be left unchanged.

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.

19 Comments

  • ERIC KUDZO ALOVOR November 24, 2020

    add me

  • Johnny Martinez November 24, 2020

    I too want to be added. N would like 15.00

  • Maria Hernandez November 24, 2020

    Add Me i e been with costco for years n want a years member shop free.

  • barbara papa November 24, 2020

    Add me. I have been with Costco for almost ten years.

  • Sandy November 23, 2020

    Your lies and idiocy are immoral. Mask mandates are based on science (which you probably failed in school) and helps to prevent the spread of germs — particularly a very deadly one called COVID. You can plug your ears and pretend it doesn’t exist, but all the dead bodies in morgues, hospitals full of sick people, and orphaned children are not “propaganda”. My husband’s coworker lost 6 family members to COVID, but dumba$$es like you are pretending that their deaths are “fake news”. Trolls like you are the real frauds, and the true plague that is keeping us from returning to normalcy. Crawl back into hole you came from and keep living in the dark ages, mor0n.

  • Kevin Nelson November 21, 2020

    add me please

  • miguel j marquez November 19, 2020

    Add me been a member for seven years

  • Kindness Is November 19, 2020

    My comment is for those who think wearing a mask and shopping in Costco for at least an hour is a hassle. My husband has been working for Costco for more than 30 years. Imagine having to wear for 8 hours?
    He understand the safety and precaution needed during this pandemic. All members health being is very important to him and so does his mother, who is over 80 years old, and whom he see once or twice a week.
    It’s very disheartening to see and hear people complaining and whining over a mask instead of empathy and cooperation during a pandemic.
    Is this is what is called “entitled”? Or amendment rights? Either way, there is a pandemic going on ALL OVER THE WORLD. Is it that hard to show some kindness and empathy to hardworking people and your fellow human beings? You might not get sick from this virus but a lot of the elderly and the weak immune do.
    30 minutes to an hour of your life shopping with a mask or shield on is not that hard to do. Not only will it protect their lives but also yours. So please do what is right.
    Thank you for reading my comment.

    • Mike November 22, 2020

      The mask mandates are based on fraud and government propoganda.

      It is immoral and nobody should be goin b along with it

  • Kimberly Day November 18, 2020

    I feel like Costco should extend membership or at least waive shipping fees for those of us that haven’t been able to shop due to not being able to shop for 10 months. Won’t let me in without a mask membership has been worthless this year.

    • Rick November 24, 2020

      but you WERE “able to shop”,,,you just chose not to.

  • Rosalinda Sheaffer November 18, 2020

    May Husband and I have been Costco Members for more than 45 years, since it began. We have been fortunate Not to encounter any difficulties in All these many years. Both of Us have enjoyed Our Executive Membership up to Now.

  • Roscoe November 17, 2020

    Who will sue next for Costco denial of service to MEMBERS that can’t wear a mask or those MEMBERS that refuse to wear a mask? We’ll see.

    • Kimberly Day November 18, 2020

      I feel like the should extend membership or at least waive shipping fees for those of us that haven’t been able to shop due to not being able to shop for 10 months. Won’t let me in without a mask membership has been worthless this year.

    • Mike November 22, 2020

      I’m putting together a suit now, either they follow the mandates and allow exemptions or they say it’s their policy and violate human rights via discrimination based on fraud.

    • Rick November 24, 2020

      yeah,,,good luck with that.

  • Ben Johnson November 17, 2020

    Add Me I had Costco for two years

  • guest November 17, 2020

    About 2 yrs ago cashiers would scream “EEEEEEEEEEEVITE”. An associate with a hand scanner would run up and start pushing useless expensive executive membership. Not that regular cheapest membership should be any amount of money. It should be free. Costco doesn’t offer anything amazing for amazing price. I buy very few same produce grocery items and very rarely clothes. I imagine costco execs want more money, employees demand more money, better everything. Execs increase prices to give their workers what they want. I’ll be splitting or canceling my membership soon. No reason to pay anymore.

    • Rick November 24, 2020

      Don’t let the door hit ya where the good Lord split ya.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts