Costco $14 Million Misleading Email Settlement Gets Final Approval in Washington

A King County Superior Court judge has given final approval to Costco Wholesale Corporation’s $14,000,000 settlement over promotional emails that allegedly carried false or misleading subject lines. Law360 reported the approval on October 6, 2026. The case is Michael Aaland v. Costco Wholesale Corporation, Case No. 25-2-16392-0 SEA, and it covers Washington residents only.

The claim deadline was August 24, 2026, and it has passed. The Costco email settlement is no longer accepting new claims, objections or opt-outs. This article explains what the lawsuit alleged, who was covered, how payments are calculated, which Washington laws were involved, and what final approval means for people who did file a claim.

Costco denied wrongdoing throughout. The settlement is not an admission of liability, and the court never ruled on whether Costco broke the law.

Costco Misleading Email Settlement: Quick Facts

Detail	Information
Case name	Michael Aaland v. Costco Wholesale Corporation
Case number	25-2-16392-0 SEA
Court	Superior Court of Washington for King County
Judge	Hon. Janet Helson
Settlement amount	$14,000,000
Defendant	Costco Wholesale Corporation (denies wrongdoing)
Class period	June 2, 2021 through July 7, 2026
Who was covered	Washington residents who received a Costco commercial email at an address in Costco’s records
Laws cited	Washington Commercial Electronic Mail Act (RCW 19.190) and Washington Consumer Protection Act (RCW 19.86)
Claim, opt-out and objection deadline	August 24, 2026 (passed)
Final Approval Hearing	Scheduled for October 2, 2026, 3:30 p.m.
Final approval	Reported by Law360 on October 6, 2026
Class counsel	HKM Employment Attorneys LLP (Seattle)
Settlement administrator	Verita (per the official settlement website)
Payment per claimant	Not fixed; equal share of the net fund among valid claimants
Official website	WashingtonCommercialEmailSettlement.com

What Did the Costco Misleading Email Lawsuit Allege?

The lawsuit alleged that Costco sent Washington residents commercial emails whose subject lines advertised temporary or time-limited promotions, when Costco allegedly knew it would extend those promotions past the stated deadline.

The official settlement notice gives two examples of the kind of subject line at issue:

• “Today is the last day to access Member-Only Saving”
• “Hot Buys available for 5 Days Only”

The plaintiff argued that this kind of urgency pushes people to open the email and buy right away, and that it is misleading when the deal is not actually ending. Costco disputed that, said it complied with the law, and maintained that it had defenses it believed would succeed at trial.

None of this has been proven in court. These are allegations, and the settlement resolves them without a trial.

Costco Email Lawsuit Timeline: From June 2025 to Final Approval

The settlement website’s FAQ lays out the procedural history. Here are the dates, in order.

Date	Event
June 2, 2025	Joseph Zydel files the original complaint in King County Superior Court alleging violations of CEMA and the Consumer Protection Act
August 1, 2025	Costco moves to dismiss, arguing the complaint failed to state a viable claim
October 10, 2025	The court denies Costco’s motion to dismiss
October 14, 2025	Amended Complaint filed
January 16, 2026	Parties jointly ask to stay the case so they can mediate before Judge Welsh (Ret.)
April 15, 2026	Second Amended Complaint filed, substituting Michael Aaland as Class Representative
June 23, 2026	Preliminary approval of the settlement (as reported by news outlets)
August 24, 2026	Deadline to file a claim, opt out or object
October 2, 2026	Final Approval Hearing scheduled
October 6, 2026	Law360 reports the judge has granted final approval

The denial of the motion to dismiss is worth noting. It meant the case survived Costco’s argument that the complaint failed as a matter of law, which helped set the stage for settlement talks.

Who Qualified for the Costco $14 Million Settlement?

You were a member of the Settlement Class if all three of these were true:

1. You received a commercial electronic mail message sent by or on behalf of Costco between June 2, 2021, and July 7, 2026.
2. You were a Washington resident when you received it.
3. You received it at an email address that appears in Costco’s data.

You did not need to be a Costco member. Eligibility turned on receiving a qualifying commercial email while living in Washington, not on holding a membership or making a purchase.

The class excluded Costco itself, any entity with a controlling interest in Costco, Costco’s current and former directors, officers and counsel and their immediate families, and anyone who validly requested exclusion. People who never received a notice by email or mail could still have qualified if they met the three requirements, but the claim deadline has now passed for everyone.

How Much Money Do Costco Settlement Claimants Get?

Costco agreed to pay $14,000,000 into a settlement fund. That money covers:

1. Payments to Settlement Class Members who filed timely, valid claims.
2. Court-awarded attorneys’ fees and litigation expenses for class counsel.
3. Any court-approved Service Award to the Class Representative.
4. Settlement administration costs, which the FAQ says are deducted before payments are distributed.

Payments are divided equally among everyone who submitted a timely and valid claim form. Because the number of valid claims was unknown when the notice was written, the settlement website stated that a per-person estimate was impossible to give.

What Class Counsel Asked the Court For

According to the official FAQ, class counsel said it would ask the court for:

• Attorneys’ fees of up to one-third of the fund, or $4,620,000
• Reimbursement of litigation expenses, estimated at $16,500
• A Service Award of no more than $2,500 for Michael Aaland

The court decides the final amounts. The numbers above are what was requested in the notice, not confirmed awards. Check the court’s final order for the exact figures approved.

Illustration: Maximum Requested Deductions

If the court awarded every dollar requested, the fund would look like this before administration costs:

Item	Amount
Gross settlement fund	$14,000,000
Maximum fee request	−$4,620,000
Estimated litigation expenses	−$16,500
Maximum Service Award	−$2,500
Remaining before administration costs	$9,361,000

This is a simple illustration using the requested figures, not an official payout calculation. Settlement administration costs come out of the fund too, and the final amount per claimant depends on how many valid claims the administrator approved. With a large number of claims, individual payments can be modest, and they are far below the $500-per-email figure that Washington’s statute allows in a lawsuit.

Related article: Arizona Labor Force $300,000 Data Breach Settlement, Claim by December 28, 2026

The $500 Per Email Figure Explained

Under CEMA, a recipient can recover $500 or actual damages, whichever is greater, for each email sent in violation of the law (RCW 19.190.040). That is the figure the plaintiff relied on in the lawsuit.

It is not what claimants receive here. The settlement pays an equal share of the net fund, and each class member could submit only one claim form regardless of how many Costco emails they received.

What Happens to Uncashed Costco Settlement Checks?

The FAQ says uncashed or undeliverable payments will be redistributed in one or both of these ways:

1. A second, pro rata distribution to class members who cashed or received their first payment, if enough money remains to justify the administrative cost.
2. A payment to the Legal Foundation of Washington.

Claimants could choose how to be paid on the claim form, including paper check, Venmo or PayPal.

Can You Still File a Costco Email Settlement Claim?

No. Every deadline in this settlement was August 24, 2026.

Action	Deadline	Status
File a claim form	August 24, 2026	Passed
Opt out of the settlement	August 24, 2026 (postmarked or emailed)	Passed
Object or comment	August 24, 2026 (postmarked or emailed)	Passed
Final Approval Hearing	October 2, 2026	Held; final approval reported October 6, 2026

If you were in the class, did not opt out, and did not file a claim, you will not receive a payment. The release in the settlement can also stop you from bringing your own lawsuit over the covered claims once the settlement becomes final. According to the notice, that release covers claims relating to commercial email messages that were or could have been brought in the lawsuit, along with claims arising from the same underlying facts.

If you did file a valid claim, keep your confirmation and watch for communications from the settlement administrator. The administrator is the only authoritative source for payment timing.

What Does Final Approval Mean for Costco Settlement Payments?

Final approval means the court found the settlement fair, reasonable and adequate after considering the agreement, the fee request and any objections. That is the standard the settlement notice says the court applied at the Final Approval Hearing, and it tracks Washington Superior Court Civil Rule 23(e), which requires court approval before a class action settlement can take effect.

Approval does not mean checks go out the next day. Distribution generally follows once the settlement becomes final, which typically means any appeal period has run or any appeal has been resolved. Under Washington’s Rules of Appellate Procedure, a notice of appeal is generally due within 30 days of the decision being appealed (RAP 5.2(a)). The administrator then needs time to process claims, calculate the net amount and issue payments.

For general background on how this works, see How To Claim A Lawsuit Settlement?

What Laws Did the Costco Misleading Email Lawsuit Cite?

The case rests on two Washington statutes. Two more laws help explain why the case matters.

Washington Commercial Electronic Mail Act (RCW 19.190)

CEMA is Washington’s commercial email statute. The key provision is RCW 19.190.020, which bars sending a commercial email to a Washington resident that contains false or misleading information in the subject line.

RCW 19.190.030 provides that a violation of the chapter is an unfair or deceptive act in trade or commerce that affects the public interest, which ties CEMA to the Consumer Protection Act. RCW 19.190.040 sets damages for the recipient at $500 or actual damages, whichever is greater.

Official source: Washington Legislature, RCW 19.190.020.

Washington Consumer Protection Act (RCW 19.86)

The Consumer Protection Act prohibits unfair or deceptive acts or practices in trade or commerce. The settlement notice says the plaintiff contends CEMA damages are subject to trebling under the Act. The Act’s private-action provision, RCW 19.86.090, allows a court to increase damages up to three times the actual damages, subject to a $25,000 cap on the increase.

Official source: Washington Legislature, RCW 19.86.

Brown v. Old Navy, LLC (Washington Supreme Court, April 2025)

This ruling is the reason subject-line cases surged in Washington. Law firm commentary describes the court as rejecting a narrow reading of CEMA, holding that a subject line can violate the statute if it contains any false or misleading information, not only information that hides the email’s commercial nature. Costco’s case is one of many filed after that decision.

Federal CAN-SPAM Act (15 U.S.C. § 7704(a)(2))

The federal CAN-SPAM Act also prohibits deceptive subject lines in commercial email. It generally preempts state email laws, but it has an exception that preserves state laws targeting falsity or deception in commercial email (15 U.S.C. § 7707(b)). That exception is why a state statute like CEMA can support a lawsuit even where federal law also applies.

Is the Costco Settlement a Finding That Costco Broke the Law?

No. The court did not decide whether Costco violated CEMA or the Consumer Protection Act. The settlement notice states that the court “has not decided whether Costco did anything wrong,” and Costco says it complied with the law. A settlement ends the dispute without a liability finding.

The notice also says the court had not made a determination that the lawsuit should proceed as a class action outside the settlement context. In practice, the class was approved for purposes of the settlement.

What the Costco Email Case Means for Businesses and Consumers

For consumers, the case is a reminder that a deadline in a promotional email can be legally scrutinized when the offer continues past it. Whether a particular message is unlawful depends on its exact wording, the facts about the promotion and the statute that applies.

For businesses, law firm commentary says more than 200 class actions over misleading email subject lines have been filed since April 2025, with damages assessed per email and per recipient. CEMA applies to companies anywhere that send commercial email to Washington residents. Similar email statutes exist in other states, and law firms have noted analogous laws in Maryland, Indiana, California, Florida and Utah.

For related coverage on this site, see our reports on the Club Med flash-sale email lawsuit and the Hickory Farms misleading email lawsuit. Each is a separate case with its own allegations, class definition and status.

Frequently Asked Questions About the Costco $14 Million Email Settlement

Did Costco settle the misleading email lawsuit for $14 million?

Yes. Costco agreed to pay $14,000,000 to resolve Aaland v. Costco Wholesale Corporation, and Law360 reported on October 6, 2026 that the judge granted final approval. Costco denies wrongdoing.

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

No. The deadline to file a claim, opt out or object was August 24, 2026. Check the official settlement website for administrator updates, but do not assume new claims are being accepted.

Who qualified for the Costco email settlement in Washington?

Anyone who received a commercial email sent by or on behalf of Costco between June 2, 2021, and July 7, 2026, while a Washington resident, at an address in Costco’s records. Costco membership was not required.

How much will each Costco email settlement claimant receive?

There is no fixed amount. Valid claimants receive an equal share of the net fund after attorneys’ fees, expenses, any Service Award and settlement administration costs. The exact amount depends on the number of valid claims and the fees the court approved.

Do Costco settlement claimants get $500 per email?

No. CEMA allows $500 or actual damages per violating email in a lawsuit (RCW 19.190.040), but this settlement pays an equal share of a common fund. Each person could submit only one claim form.

When will Costco email settlement payments be sent?

The administrator controls timing. Payments generally follow once the settlement becomes final and any appeal period or appeal is resolved. Check the official settlement website for updates.

What emails were challenged in the Costco lawsuit?

The notice cites subject lines such as “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only,” which allegedly advertised limited-time offers that Costco knew it would extend.

Did Costco admit it sent misleading emails?

No. Costco denies wrongdoing, and the settlement is not an admission of wrongdoing.

What happens to uncashed Costco settlement checks?

Under the settlement terms, uncashed or undeliverable funds go to a second pro rata distribution to class members who cashed their first payment, if cost-effective, and/or to the Legal Foundation of Washington.

What if I stayed in the Costco class but did not file a claim?

You will not receive a payment, and once the settlement is final you generally cannot sue Costco separately over the covered claims.

Official Sources and Case Information

• Official Washington Commercial Email Settlement website
• Official settlement FAQs and Notice
• Law360: Costco’s $14M Deal Over Misleading Emails Gets Final OK
• RCW 19.190.020, Washington Commercial Electronic Mail Act
• RCW 19.86, Washington Consumer Protection Act

This article provides general information based on the official settlement notice and public reporting. It is not legal advice, and AllAboutLawyer.com is not a law firm. For questions about your own situation, consult a licensed attorney or contact the settlement administrator.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the official Notice and FAQ on the settlement website run by the administrator (WashingtonCommercialEmailSettlement.com), the Law360 final approval report, and the Washington Legislature’s RCW pages, as of October 9, 2026. Last Updated: October 9, 2026.