Costco Shrimp Case Dismissed for Lack of Standing
A California federal court has dismissed a lawsuit against Costco
Wholesale Corp. alleging the company’s shrimp was falsely advertised as
adherent to a supplier code of conduct on human rights while the product
was allegedly obtained through the use of slave labor. Sud v. Costco
Wholesale Corp., No. 15-3783 (N.D. Cal., order entered January 15,
2016). The plaintiff argued that she was harmed because she purchased
shrimp relying on Costco’s misrepresentation; the court disagreed after
Costco provided records of the plaintiff’s and her mother’s purchases,
which the company tracks through its membership program. Accordingly
the court granted Costco’s motion to dismiss but allowed the plaintiff
leave to amend. Details about the August 2015 complaint appear in Issue
576 of this Update.
Issue 591