Costco Rotisserie Chicken Lawsuit, Eligibility, Claim Filing, and “No Preservative” Payout Updates 2026
A major consumer protection class action lawsuit was filed against Costco on January 22, 2026, over allegations that its famous $4.99 Kirkland Signature Rotisserie Chickens are falsely advertised. The case, Johnston, et al. v. Costco Wholesale Corporation, claims the company deceptive marketed the product as having “no preservatives” despite containing sodium phosphate and carrageenan. As of January 30, 2026, the litigation is in the early filing stages in the U.S. District Court for the Southern District of California.
What the Costco Rotisserie Chicken Lawsuit Involves
The lawsuit centers on consumer fraud and false advertising claims. Plaintiffs argue that Costco leveraged the “clean label” trend to sell millions of chickens by promising a preservative-free meal.
The legal complaint alleges that Costco violated the California Consumers Legal Remedies Act and False Advertising Law. The plaintiffs state that they—and millions of other shoppers—paid a “price premium” for the rotisserie chicken because they believed it was free of artificial additives. Because sodium phosphate and carrageenan are technically used to prevent spoilage and maintain texture, the lawsuit argues the “no preservatives” label is a material misrepresentation.
Current Status and Recent Updates (January 2026)
- Case Name: Johnston, et al. v. Costco Wholesale Corporation
- Court: U.S. District Court for the Southern District of California
- Case Number: 3:26-cv-00403
- Status: Active Litigation / No Settlement Reached Yet
Recent Update: On January 28, 2026, Costco issued a statement confirming they have begun removing the “No Preservatives” language from warehouse signage and digital menus. This change follows the initial filing and suggests the company is moving to mitigate further liability. However, no formal settlement agreement has been signed, and a judge has not yet certified the class of affected consumers.
Compensation and Relief Sought
The plaintiffs are seeking statutory damages, restitution, and punitive damages for all consumers who purchased a rotisserie chicken under the “no preservatives” label.
While a specific dollar amount per chicken has not been determined, similar consumer litigation often seeks between $5 to $50 per claimant or a refund of the price premium paid. The lawsuit also seeks injunctive relief, demanding that Costco permanently change its labeling and marketing practices nationwide to reflect the true nature of the ingredients.
What You Must Know
1. The Specific Allegations and Their Significance
The significance of this case lies in the definition of a “preservative.” While Costco may argue these ingredients are for “moisture” or “texture,” the plaintiffs cite food science standards showing these chemicals extend shelf life. If the court agrees, it could set a massive precedent for how “clean labels” are used in the grocery industry.
2. The Current Status of Litigation
Currently, this is active litigation, not a closed case. There is no money available to claim today. For plaintiffs, this means the case must pass through the “motion to dismiss” phase and “class certification” before any payout is even discussed.
3. What Rights are at Stake
As a consumer, you have the right to truth in labeling. This lawsuit asserts that even for a low-cost $4.99 item, corporations cannot use deceptive marketing to influence purchasing decisions. If a settlement is reached, it will likely cover anyone in the U.S. who bought the chicken over the last four years.
What to Do Next
How to Determine if You Are a Potential Class Member
If you purchased a rotisserie chicken from any U.S. Costco warehouse between 2022 and January 2026, you may eventually be eligible for a claim. You do not need to take legal action yourself right now, as the lead plaintiffs are representing the “class.”
How to Stay Informed
To monitor this case for a settlement website or claim form instructions:
- Save Your Receipts: While Costco tracks purchases via membership, keeping digital receipts from the Costco app is a safe way to prove your purchase.
- Check Official Dockets: You can follow case updates through the Pacer.gov portal using case number 3:26-cv-00403.
- Watch for Notices: If a settlement is approved, Costco will likely be required to email all members who purchased the chicken with a link to a claim portal.
Where to Seek Legal Counsel
If you believe you have suffered specific health issues related to these additives, you should consult a personal injury attorney specializing in food safety. For general consumers, waiting for the class action to proceed is the standard route for compensation.
FAQs
Is there a Costco rotisserie chicken settlement website?
No, there is currently no settlement website because the case is still in the early litigation phase. A website will only be created if a judge approves a settlement agreement between Costco and the plaintiffs.
How much money can I get from the Costco lawsuit?
The exact payout is unknown. In false advertising cases, payouts typically range from a few dollars for those without receipts to larger amounts for frequent purchasers.
Can I still buy the chicken at Costco?
Yes, Costco continues to sell the rotisserie chicken for $4.99. The lawsuit is about how the chicken is marketed, not its safety or availability for sale.
Who is eligible to join the lawsuit?
The proposed class includes all residents of the United States who purchased a Kirkland Signature Seasoned Rotisserie Chicken that was labeled as containing “no preservatives.”
What did Costco say about the preservatives?
Costco has stated that their ingredients are FDA-approved and necessary for product quality, but they have recently updated their signage to remove the “no preservatives” claim in response to the legal pressure.
How do I file a claim?
You cannot file a claim yet. Once a settlement is reached, a Settlement Administrator will be appointed, and a claim form will be made available online.
Last Updated: January 30, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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