Key insights
- Costco is seeking dismissal of a lawsuit demanding tariff refunds to customers. The suit alleges Costco owes refunds for higher prices charged before the Supreme Court struck down Trump-era import tariffs. Costco argues the lawsuit is speculative and the plaintiff suffered no harm, as they willingly purchased products at posted prices. The outcome could impact Costco's financials and potentially set a precedent for other companies seeking tariff refunds.
Investing.com -- Costco Wholesale (NASDAQ:COST) has filed a motion to dismiss a proposed class action lawsuit that claims the retailer owes customers refunds for higher prices charged before the Supreme Court struck down import tariffs imposed by President Donald Trump.
In a Monday filing in Chicago federal court, Costco argued the lawsuit is speculative and that the customer who brought the case suffered no harm.
The company stated that the plaintiff freely chose to purchase products at accurately posted prices and received what he paid for. Costco added it never suggested it would later refund part of the purchase price.
Costco is among thousands of companies that sued the Trump administration to recover billions of dollars in tariffs collected by the government. The administration has established a refund system.
The lawsuit seeks a declaration requiring Costco to return to customers any refunds it receives for tariffs paid under the International Emergency Economic Powers Act.
Costco said it has not yet received any refunds and it remains unclear when it might receive them, in what amount, or whether any refunds would relate to specific purchases.
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