THE COSTCO LAWSUIT IN 2022, LIC FILED ITS FIRST LAWSUIT THE WIDELY PUBLICIZED COSTCO SHAREHOLDER DERIVATIVE CASE, SMITH V. VACHRIS. LICS CLIENTS, TWO COSTCO SHAREHOLDERS, FILED THE SUIT IN WASHINGTON STATE KING COUNTY SUPERIOR COURT. THEY ALLEGED THAT COSTCO EXECUTIVES ARE CAUSING THE COMPANY TO VIOLATE NEBRASKA AND IOWA LAWS AGAINST LIVESTOCK NEGLECT. COSTCO BREEDS AND SLAUGHTERS 100 MILLION BIRDS EACH YEAR. THE COMPLAINT FOLLOWED A 2021 UNDERCOVER INVESTIGATION REVEALING THAT COSTCOS CHICKENS ARE BRED TO GROW SO FAST THAT MANY OF THEM CANNOT STAND UP UNDER THEIR OWN WEIGHT. THE 50-PAGE COMPLAINT ALLEGED THAT MANY OF THESE YOUNG, DISABLED BIRDS CANT REACH FOOD OR WATER, AND THAT COSTCO FAILS TO GIVE THEM INDIVIDUALIZED VETERINARY CARE. THE SUIT ACCUSED COSTCO EXECUTIVES OF HARMING COSTCO BY VIOLATING THEIR FIDUCIARY DUTY TO ACT LAWFULLY.
