Costco Hit With Class Action Over Member Contracts

Law360, New York (April 13, 2010, 6:47 PM EDT) -- Costco Wholesale Corp. has been hit with a proposed class action alleging the warehouse chain cheated certain members out of benefits due under their executive-level membership contracts.

Two Costco members filed a suit Monday in the U.S. District Court for the Eastern District of Michigan seeking to represent Michigan residents who have been denied benefits from their executive memberships.

Costco, which requires shoppers to have a membership, offers members an opportunity to receive a 2 percent return on purchases if they pay $50 to upgrade their...
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