Costco (COST) Faces a Class-Action Lawsuit Over This Divisive Political Issue

FomoAnxiety · 2026-03-12T20:52:23+00:00

Costco faces a class-action lawsuit in Illinois after the Supreme Court revoked President Trump's tariffs, as customers seek refunds. The lawsuit, initiated by member Matthew Stockov, could expand to include more customers. Costco is also pursuing refunds from the Trump administration for tariffs it paid.

FomoAnxiety

2026-03-12 20:52:23

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Costco Wholesale COST +1.12% ▲ faces a class-action lawsuit from its customers in Illinois who are demanding a tariff refund after the U.S. Supreme Court struck down U.S. President Donald Trump’s import duties.

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Costco is the first retailer to face a potential class-action lawsuit related to tariff refunds. A suit filed in Illinois federal court alleges that Costco owes its customers refunds in light of the Supreme Court’s ruling against Trump’s sweeping tariffs.

The lawsuit has been filed on behalf of a Costco member in the State of Illinois named Matthew Stockov and seeks class-action status, meaning it has the potential to grow into a larger lawsuit involving more Costco customers if certified by a judge. The class-action certification still needs to happen, but the lawsuit amounts to a big headache for Costco and possibly other retailers.

Costco’s Lawsuit Against the Trump Administration

Costco itself is seeking a refund from the Trump administration over tariffs. In fact, Costco sued the administration last November in anticipation of the duties being struck down by the Supreme Court. Costco is seeking to block the tariffs and secure refunds on taxes it has paid to date.

Costco isn’t alone. More than 1,000 U.S. businesses have reportedly sought tariff refunds, a number that is expected to grow. An estimated $175 billion in collected tariffs that have been deemed illegal by the Supreme Court are now up for grabs. The refunds were expected to be a boon to retailers such as Costco. But they now might be forced to pass them onto customers or use them to settle class-action lawsuits.

Is COST Stock a Buy?

Costco’s stock has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 18 Buy, four Hold, and one Sell recommendations issued in the last three months. The average COST price target of $1,086.81 implies 8.76% upside from current levels.

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