Costco Investors Ask 9th Circ. To Revive Internal Controls Suit

Law360 (July 9, 2021, 9:20 PM EDT) -- Costco investors urged a Ninth Circuit panel Friday to revive their claims that the retail giant's executives made deliberately reckless misrepresentations about internal controls in their public filings, but the company countered that its top executives lacked a motive to engage in fraud, calling the suit "another case of fraud by hindsight."

During oral arguments Friday, the Costco Wholesale Corp. investors urged the panel to resuscitate their suit alleging they were misled about the state of the big-box chain's internal financial reporting controls, arguing that they had alleged particularized facts giving rise to a strong inference that Costco and its top brass engaged in...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!