Costco Wholesale (NASDAQ:COST) moved on Monday in Chicago federal court to dismiss a proposed class action that alleges the chain owes customers refunds tied to tariff-driven price increases imposed before the Supreme Court struck down certain import levies put in place by President Donald Trump.
In the filing, Costco characterized the complaint as speculative and said the named plaintiff did not suffer any cognizable injury. The company noted the shopper chose to buy items at prices that were correctly displayed at the time of sale and received the goods he paid for.
Costco also emphasized in its filing that it never indicated to customers it would later make partial refunds of purchase prices. That point underpins the company’s argument that the lawsuit lacks the factual basis required to proceed.
The litigation arises amid broader litigation by thousands of companies that sued the Trump administration seeking recovery of billions in tariffs that were previously collected. The administration has set up a mechanism for handling refunds tied to those tariffs.
The proposed class action seeks a court declaration that would require Costco to return to customers any tariff refunds the company receives under the International Emergency Economic Powers Act. Costco told the court it has not yet received any such refunds and that several key matters remain unsettled.
Specifically, Costco said it is unclear when any refunds might be issued, how large they would be if they occur, and whether any refund would map back to particular purchases at its stores. Those uncertainties formed part of Costco’s basis for seeking dismissal.
The company’s motion asks the court to reject the plaintiff’s claim on the grounds outlined in the filing. Beyond the procedural request, the filing highlights the unresolved status of potential government refunds and the absence, according to Costco, of a direct customer harm at this stage of the case.
Note: The article presents the claims and positions as stated in court filings and does not adjudicate the merits of the pending litigation.