Costco (COST) Stock News: Kirkland Tequila Labeling Suit Dismissed With Prejudice

A federal judge dismissed with prejudice on October 16, 2026 a proposed class action over Costco’s Kirkland Signature tequilas, according to OpenClassActions. The case was Salisbury v. Costco Wholesale Corporation (No. 2:25-cv-02277, Western District of Washington), before Judge Kymberly K. Evanson.

What was alleged#

Fourteen plaintiffs in nine states said the Blanco, Reposado, Añejo, Cristalino and Extra Añejo tequilas, each labeled “100% de Agave” and “Hecho en Jalisco, Mexico,” contained cheaper non-agave alcohol. Under Mexico’s tequila standard, a 100% agave label means fermentation only from Blue Weber agave sugars. Costco’s supplier is the Santa Lucia distillery in Jalisco, according to the complaint.

What the dismissal means#

Dismissal with prejudice ends the case in the district court. The court did not find the labels false or the tequila adulterated, and Costco was not found liable. The plaintiffs’ counsel, Hagens Berman, has said it plans to appeal. There is nothing to claim.

Why it matters for the stock#

For readers following COST, Kirkland Signature is the largest private label in U.S. retail and a core part of the membership value proposition, so label challenges draw attention regardless of size. The dismissal removes one such case; the appeal keeps a small tail of risk open.

Read the full case page on OpenClassActions.

Published October 21, 2026. Informational reporting, not legal or investment advice. TickerPosts and OpenClassActions.com share a founder. Settlements resolve claims without an admission of wrongdoing, and allegations in pending lawsuits are unproven.