Lawsuit Update

Washington Costco Email Lawsuit: $14 Million Settlement Explained

Washington Costco Email Lawsuit: $14 Million Settlement Explained

Case Status

Settlement Pending Final Approval

Final approval hearing scheduled October 2, 2026 in Seattle; claims deadline already passed

Total Settlement

$14M

Gross settlement fund, before attorneys' fees, costs and the class representative's service award

Class Period

6/2/2021-7/7/2026

Commercial emails sent to Washington residents during this window

Key facts
  • The Washington Costco email lawsuit, formally Michael Aaland v. Costco Wholesale Corporation, Case No. 25-2-16392-0 (Wash. Super. Ct. King Cnty.), is a Washington state-court class action, not a federal MDL.
  • Costco agreed to a $14 million settlement, preliminarily approved June 23, 2026, but final court approval remains pending as of this writing after an October 2, 2026 hearing, and the claims deadline of August 24, 2026 has already passed.
  • The lawsuit alleges Costco sent commercial emails to Washington residents with false or misleading subject lines, including limited-time "last day" promotions that were allegedly extended past their stated deadlines, in violation of Washington's Commercial Electronic Mail Act and Consumer Protection Act.
  • Costco Wholesale Corporation is the sole named defendant and has denied any wrongdoing while agreeing to the settlement described above.

What Is the Washington Costco Email Lawsuit?

The Washington Costco email lawsuit is a state-court class action against Costco Wholesale Corporation over commercial emails Costco sent to Washington residents, not a federal MDL. It is formally captioned Michael Aaland v. Costco Wholesale Corporation, Case No. 25-2-16392-0, pending in the Superior Court for the State of Washington, King County, in Seattle.

The case was originally filed on June 2, 2025 by a different named plaintiff, Joseph Zydel, and later amended to substitute Michael Aaland as class representative after Zydel's counsel disclosed an existing Chapter 13 bankruptcy repayment plan that risked delaying the case. The underlying allegations against Costco did not change with that substitution.

Costco Wholesale Corporation is the sole named defendant. The company has denied any wrongdoing and maintains it complied with all applicable state and federal laws, while agreeing to the settlement described on this page to resolve the case.

“On June 2, 2025, Joseph Zydel filed suit against Defendant in King County Superior Court, Case No. 25-2-16392-0 (Wash. Super. Ct. King Cnty.) (the "Action"). Mr. Zydel claimed, among other things, that Costco violated Washington state law by sending commercial electronic mail messages containing false or misleading subject lines to individuals residing in Washington.”

Source: Michael Aaland v. Costco Wholesale Corporation, Case No. 25-2-16392-0 (Wash. Super. Ct. King Cnty.), Settlement Agreement, Recital 1

Why Are People Filing Washington Costco Email Lawsuits?

People filed the Costco email lawsuit because Costco is alleged to have sent Washington consumers commercial emails with false or misleading subject lines advertising sales and promotions. The complaint pointed to subject lines like "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only," and alleged that some of the promotions those subject lines described were actually extended past the stated deadlines.

The theory behind the case is that manufacturing false urgency in a marketing email, telling a recipient a deal is about to expire when it is not, can itself be an unlawful practice under Washington's specific anti-spam statute, separate from whether the underlying promotion or product was otherwise legitimate. Costco disputes that its practices violated the law and has not been found liable.

What Injuries Are Included in the Washington Costco Email Lawsuit?

The Costco email lawsuit alleges two distinct legal violations arising from the same emails, one a technical email-marketing statute and one a broader consumer-protection statute. Each is defined in plain language below. Costco has not been found liable under either theory and has denied wrongdoing.

Washington Commercial Electronic Mail Act (CEMA) Violation

Washington's Commercial Electronic Mail Act is a state anti-spam statute that regulates the content of commercial emails sent to Washington residents, including a prohibition on false or misleading information in the email's subject line.

Plaintiffs allege Costco's promotional emails used subject lines suggesting a sale or discount was about to end when, in some instances, the promotion described was allegedly extended beyond the date stated in the email. The complaint alleges this practice, repeated across a large volume of emails sent to Costco's Washington marketing list between June 2021 and 2026, falls within CEMA's prohibition on misleading commercial email subject lines.

Washington Consumer Protection Act (CPA) Violation

Washington's Consumer Protection Act is a broader state statute that prohibits unfair or deceptive acts in trade or commerce and allows private consumers to sue over practices that meet that standard.

Plaintiffs alleged the same conduct underlying the CEMA claim, sending emails with allegedly false or misleading subject lines, also amounted to an unfair or deceptive practice under the CPA. Pleading both statutes together let plaintiffs pursue two separate legal theories over the same set of emails rather than relying on the narrower email-specific statute alone.

Who Qualifies for the Washington Costco Email Lawsuit?

You may qualify if:

  • You were a Washington resident who received a commercial email transmitted by Costco Wholesale Corporation, or someone acting on its behalf, at any time from June 2, 2021 through July 7, 2026
  • The email was sent to an address that appeared on Costco's own email marketing list associated with a Washington warehouse during that period, per the Settlement Class definition
  • You submitted a timely, valid claim form before the August 24, 2026 deadline

You may not qualify if:

  • You were not a Washington resident at the time you received the email
  • You did not submit a claim form before the August 24, 2026 deadline, which has already passed with no new claims being accepted
  • Costco Wholesale Corporation itself, its officers and directors, and the presiding judge and their immediate families, who are excluded from the Settlement Class by the settlement's own terms

This settlement is closed to new claims as of this writing. This eligibility summary describes who was historically covered by the Settlement Class, not an open opportunity to file. If you submitted a timely claim and have questions about your payment, contact the settlement administrator through www.WashingtonCommercialEmailSettlement.com or 888-808-6247 rather than filing a new claim.

What Is the Current Status of the Washington Costco Email Lawsuit?

The current status of the Washington Costco email lawsuit is a preliminarily approved $14 million settlement awaiting final court approval, not a dismissed or abandoned case. The Superior Court for the State of Washington, King County, granted preliminary approval on June 23, 2026, and a final approval hearing is scheduled for October 2, 2026, but the court had not yet ruled on final approval as of this writing.

Michael Aaland v. Costco Wholesale Corporation

Joseph Zydel originally filed this case against Costco in King County Superior Court, and Michael Aaland was later substituted as class representative by stipulated motion. The parties reached a settlement following a full-day mediation before retired Judge Diane Welsh, and the court has since granted preliminary approval, conditionally certified the Settlement Class, and set a final approval hearing.

CourtSuperior Court for the State of Washington, King County (Seattle)
Case Number25-2-16392-0
Class CounselJoseph Wright, Donald Heyrich, Jason Rittereiser and Rachel Emens, HKM Employment Attorneys LLP
MediatorRetired Judge Diane Welsh
Preliminary ApprovalJune 23, 2026
Claims DeadlineAugust 24, 2026 (passed)
Final Approval HearingOctober 2, 2026, 3:30 p.m. PT, Seattle (ruling still pending as of this writing)

The settlement agreement caps Class Counsel's attorneys' fees and costs request at 33% of the $14 million gross settlement fund, roughly $4.62 million, and caps Michael Aaland's service award for serving as class representative at $2,500, both subject to the court's approval at the final approval hearing.

How Much Is the Costco Email Settlement Payout Per Person?

The settlement does not set a fixed per-person payout; each valid claimant will receive an equal share of whatever remains in the $14 million fund after court-approved attorneys' fees, costs, and the service award are deducted. The settlement administrator and the parties have both said it is impossible to calculate an exact per-claimant amount until the claims period closes and the total number of valid claims is known.

This estimate comes from the settlement agreement's own claims-made structure, not a guaranteed dollar figure. Washington's Commercial Electronic Mail Act separately allows recipients to seek statutory damages of up to $500 per violating email in an individual lawsuit, but that figure describes the statute's own individual-claim ceiling, not what any class member will actually receive from this settlement's shared, pro rata fund.

Settlement payments will be issued by paper check, Venmo, PayPal, or another electronic payment method chosen by the settlement administrator, and any paper check not cashed within a 90-day check-cashing period will have its value redirected to the Legal Foundation of Washington rather than returned to Costco.

Washington Costco Email Lawsuit Updates

Here is the current status of the Washington Costco email lawsuit, updated with new filings and rulings as they're confirmed. The case has a reached settlement still awaiting final court approval as of this writing.

Washington Costco Email Lawsuit Timeline of Events

  • Final Approval Hearing Scheduled

    The Superior Court for the State of Washington, King County, has scheduled the final approval hearing for October 2, 2026, at 3:30 p.m. Pacific time in Seattle, where the court will decide whether to grant final approval to the $14 million settlement.

  • Claims-Filing Deadline Passes

    August 24, 2026 was the deadline for Settlement Class Members to submit a claim form, exclude themselves from the settlement, or object to its terms, and new claims are no longer being accepted after that date.

  • Court Grants Preliminary Approval

    The court granted preliminary approval of the $14 million Costco settlement on June 23, 2026, conditionally certified the Settlement Class, and approved the form of notice to be sent to class members.

  • Second Amended Complaint Substitutes Aaland as Class Representative

    Plaintiff's counsel filed a Second Amended Complaint on April 15, 2026, formally substituting Michael Aaland for Joseph Zydel as the named class representative, after the court granted the parties' stipulated motion to do so on April 6, 2026.

  • Parties Reach Settlement Terms at Mediation

    The parties conducted a full-day mediation with retired Judge Diane Welsh on March 3, 2026 and reached resolution on the settlement's core terms, which they memorialized in a CR2A essential terms sheet before drafting the full settlement agreement.

  • Case Stayed for Mediation

    The parties jointly asked the court to stay the case on January 16, 2026 so they could pursue arms-length mediation before retired Judge Diane Welsh, after conducting discovery to assess the potential damages and risks of continued litigation.

  • Plaintiff Files Amended Complaint

    Joseph Zydel filed an Amended Complaint on October 14, 2025 after the court granted him leave to do so following its ruling on Costco's motion to dismiss.

  • Court Denies Motion to Dismiss in Part

    The court denied Costco's motion to dismiss in part on October 10, 2025 and granted Zydel leave to file an amended complaint, allowing the core CEMA and Consumer Protection Act claims to continue.

  • Joseph Zydel Files the Original Complaint

    Joseph Zydel filed the original complaint against Costco Wholesale Corporation in King County Superior Court on June 2, 2025, alleging Costco's promotional emails to Washington residents contained false or misleading subject lines.

How to File a Washington Costco Email Lawsuit

To file a Washington Costco Email lawsuit, follow the 4 steps listed below.

  1. Check whether you fell within the Settlement Class: Review the eligibility criteria above; the Settlement Class covers Washington residents who received a qualifying Costco commercial email between June 2, 2021 and July 7, 2026.
  2. Look up your claim status on the official settlement website: WashingtonCommercialEmailSettlement.com is the case's official settlement website, run under the court's supervision, and is the authoritative source on a previously filed claim's status.
  3. Confirm the claims deadline has passed: The August 24, 2026 deadline to file a new claim, exclude yourself, or object has already passed, so anyone who did not act by that date cannot submit a new claim in this settlement.
  4. Watch for a final approval ruling before expecting payment: Costco is not required to fund payments until the court grants final approval at or after the October 2, 2026 hearing, so a claimant who already filed should expect a delay before any check or electronic payment arrives.

Washington Costco Email Lawsuit is no longer accepting new claims. The claims-filing deadline passed on August 24, 2026, and the settlement is still awaiting final court approval at an October 2, 2026 hearing as of this writing.

What Did Costco Say About the Email Lawsuit?

Costco has denied any wrongdoing in the email lawsuit while agreeing to the $14 million settlement to resolve the case. Costco has not been found liable, and the presiding court has not ruled on the merits of the underlying allegations.

Costco maintains it has abided by all applicable state and federal laws and that the lawsuit is not well grounded in law or fact, and the settlement agreement itself states that Costco does not admit to any wrongdoing and continues to deny the allegations against it. According to Class Counsel's own representations to the court, the decision to settle followed a mediated assessment of the litigation's costs and risks rather than any concession on the underlying claims.

Is the Washington Costco Email Lawsuit the Same as Other Costco Lawsuits?

No. Costco faces more than one legally distinct lawsuit at a time, and "Costco lawsuit" alone does not identify which one a source is discussing. Only the Washington commercial email class action described on this page is the subject of this article; two other real, separate Costco cases turned up in research and are summarized here strictly for disambiguation.

A California man, Russel George, separately sued Costco in California alleging the company failed to send the advance renewal notice California law requires before auto-renewing a membership. That case involves membership billing practices under California's auto-renewal statute, not email marketing content, and has no connection to the Washington email settlement described above.

Separately, plaintiff Lisa Taylor filed a class action against Costco in Washington federal court alleging the company's Kirkland-brand rotisserie chickens have been affected by chronic salmonella contamination tied to unsanitary poultry-processing conditions. That case involves food safety, not email marketing, and though it was also filed in Washington, it is a distinct case with its own docket, unrelated to the Aaland settlement described above.

CaseWhat It's AboutCourtStatus
Aaland v. Costco (this page)Allegedly false or misleading commercial email subject linesWashington Superior Court, King County$14M settlement, pending final approval
George v. Costco (unrelated)Membership auto-renewal notice requirementsCalifornia state courtSeparate class action, reported as newly filed
Taylor v. Costco (unrelated)Kirkland rotisserie chicken salmonella contaminationWashington federal courtSeparate class action, reported as newly filed

Frequently Asked Questions

What is the Washington Costco email lawsuit about?

The Washington Costco email lawsuit, formally Michael Aaland v. Costco Wholesale Corporation, is a state-court class action alleging Costco sent Washington consumers commercial emails with false or misleading subject lines, including limited-time promotions the complaint says were extended past their stated deadlines.

Is the Costco email lawsuit a class action?

Yes. It is a Washington state-court class action, Case No. 25-2-16392-0 in the Superior Court for the State of Washington, King County, with a Settlement Class the court has conditionally, but not yet finally, certified.

Has the Costco email lawsuit settled?

The parties reached a $14 million settlement, and the court granted preliminary approval on June 23, 2026, but final approval is still pending as of this writing ahead of an October 2, 2026 hearing. The settlement is not fully final until the court rules on final approval.

Can I still file a claim in the Costco email settlement?

No. The deadline to file a new claim was August 24, 2026, and that deadline has passed. Anyone who submitted a timely claim can check its status at WashingtonCommercialEmailSettlement.com rather than filing a new claim.

How much money will Costco email settlement claimants get?

The settlement does not set a fixed per-person amount; each valid claimant receives an equal share of the $14 million fund after court-approved attorneys' fees, costs, and the class representative's service award are deducted, and the exact amount cannot be confirmed until the claims period closes and the court grants final approval.

Is the Washington Costco email lawsuit the same as the Costco chicken lawsuit?

No. The Washington email settlement covered on this page is a separate, distinct matter from Lisa Taylor's Kirkland rotisserie chicken salmonella class action and from Russel George's California membership auto-renewal lawsuit, both of which involve different conduct and different courts.

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