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Costco Faces $14 Million Lawsuit: Who Can Claim Money and Until When?

A Costco class action settlement could provide cash payments to customers in Washington state over allegedly misleading promotional emails.
2026-07-29T05:11:00-04:00
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Costco class action settlement: Who can claim money?

Millions of Costco customers in Washington state could receive a cash payment through a $14 million Costco class action settlement that aims to resolve a class-action lawsuit over allegedly misleading promotional emails sent over several years.

  • Why it matters: If you lived in Washington and received promotional emails from Costco between 2021 and 2026, you may be eligible for compensation—even if you have not received a notice about the settlement.

Lawsuit Alleges Costco Promoted Offers That Didn’t Actually End

The lawsuit was filed in the Superior Court of King County, Washington, and alleges that Costco violated the state’s Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act.

According to the plaintiffs, Costco sent promotional emails with subject lines advertising «last day» or «limited-time» offers even though the company allegedly knew those same promotions would continue after the advertised deadline.

Examples cited in the lawsuit include messages such as:

  • «Today is the last day to access exclusive member savings.»
  • «Unbeatable deals available for only 5 days.»

The plaintiffs argue that these messages could have misled consumers into making purchases under a false sense of urgency.

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Costco class action settlement: Who can claim money? – PHOTO: Shutterstock

Costco Agreed to a Settlement but Denies Any Wrongdoing

As part of the legal proceedings, Costco agreed to establish a $14 million settlement fund to resolve the case. However, the company denies violating any laws and maintains that it acted in compliance with all applicable regulations.

The settlement has already received preliminary court approval, but a final approval hearing is scheduled for October 2, 2026.

Until then, several aspects of the agreement—including the exact amount each eligible claimant will receive—are still being finalized.

The final payment will depend on the total number of valid claims submitted.

Before distributing the settlement funds, the settlement administrator will deduct:

  • Attorneys’ fees.
  • Litigation costs.
  • Administrative expenses.
  • The court-approved service award for the class representative.

The remaining funds will then be divided equally among all approved claimants.

Who Is Eligible to Claim Part of the Costco Class Action Settlement?

According to the official settlement website, you may qualify if you meet all three of the following requirements:

  • You received a commercial email sent by or on behalf of Costco between June 2, 2021, and July 7, 2026.
  • You were a resident of Washington state when you received the email.
  • The email was sent to an email address registered in Costco’s database.

People who received a notification by email or postal mail have likely already been identified as potential class members.

However, not receiving a notice does not automatically disqualify you. Anyone who meets the eligibility requirements may still be able to submit a claim.

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Costco class action settlement: Who can claim money? – PHOTO: Shutterstock

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Until When Can You File a Claim?

The official settlement website remains open for potential class members to determine whether they qualify and to submit a claim before the legal process concludes.

Although the court’s final approval hearing is scheduled for October 2, 2026, interested consumers should check the official settlement website for the specific deadline to file a claim, as that deadline may occur before the hearing.

For people who lived in Washington during the period covered by the lawsuit and received Costco promotional emails, verifying whether they are part of the settlement class could result in a cash payment once the Costco class action settlement receives final court approval.

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