Costco Faces Proposed Class Action Over Salmonella Disclosure Claims

Costco Wholesale (NASDAQ: COST) is facing a proposed class action lawsuit in federal court alleging it failed to disclose salmonella contamination risks tied to a Nebraska chicken processing facility.

The complaint, filed in Seattle by Missouri resident Lisa Taylor, contends that salmonella contamination at Costco’s Fremont, Nebraska plant was not disclosed to consumers who purchased Kirkland Signature rotisserie chicken and raw chicken products. The lawsuit alleges the facility “consistently” failed to meet U.S. Department of Agriculture safety standards.

According to the filing, testing data showed that more than 9.8% of whole chickens and 15.4% of chicken parts processed at the plant tested positive for Salmonella. The plaintiff claims she purchased rotisserie chickens from Costco on a monthly basis and paid more than she otherwise would have had the alleged contamination risks been disclosed.

The suit seeks compensatory damages as well as treble damages for consumers who purchased Kirkland Signature rotisserie chicken or raw chicken parts beginning Jan. 1, 2019. It alleges violations of Washington state consumer protection laws and asserts that the retailer implicitly assured customers that the products were safe for consumption. Costco sells its rotisserie chicken for $4.99, a price point widely viewed as a traffic-driving strategy. At its most recent annual meeting, the company said it sold more than 157 million rotisserie chickens globally in 2025.

The new filing follows a separate proposed class action submitted last month in federal court in San Diego related to similar allegations.In financial results reported in December, Costco said net sales for the first quarter of fiscal 2026, which ended Nov. 23, 2025, rose 8.2% year over year to $65.98 billion.

Separately, the retailer has filed legal action against the Trump administration seeking to block the collection of certain tariffs and recover duties paid under recently imposed global import taxes.

About Costco 

Founded in 1983 and headquartered in Issaquah, Washington, Costco Wholesale (NASDAQ: COST) operates a global chain of membership-based warehouse clubs. The company sells a wide range of merchandise, including groceries, household goods, electronics and private-label products under its Kirkland Signature brand. Costco operates hundreds of warehouses across North America and in international markets.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.