For a product that costs $4.99 and has the cultural standing of a minor deity, Costco’s rotisserie chicken is having a rough year. Just weeks after facing a proposed class-action lawsuit over its “no preservatives” signage, Costco is now dealing with a second legal challenge — this time tied to allegations about salmonella at one of its poultry processing facilities.
A complaint filed in federal court in Seattle alleges that a Costco-owned poultry processing facility in Fremont, Nebraska, has repeatedly failed federal salmonella performance standards and distributed potentially contaminated chicken products to stores nationwide. The lawsuit draws on research from Farm Forward, an animal welfare nonprofit that has criticized safety conditions at the plant, known as Lincoln Premium Poultry. The organization claims the facility has struggled to control salmonella contamination over multiple years.
At this stage, those claims remain allegations. No court has ruled on the case.
What the Lawsuit Alleges
The named plaintiff, a Missouri shopper, says she regularly purchased Costco’s rotisserie chicken and would not have paid the same price had she known about the alleged safety issues. The suit seeks damages on behalf of customers who purchased rotisserie chicken and certain raw chicken products in recent years.
Unlike a recall, the lawsuit does not claim that every product was contaminated. Instead, it focuses on whether the company’s supply chain met federal safety benchmarks and whether consumers were adequately informed. Salmonella standards are based on sampling and testing thresholds, meaning facilities can fail performance metrics even if most product are safe. Still, repeated failures can raise regulatory and reputational concerns.
A Complicated Moment for a Signature Product
The case arrives just weeks after Costco faced a separate lawsuit accusing the retailer of falsely advertising its rotisserie chicken as containing “no preservatives.” In that matter, the company removed in-store signage tied to the claim.
Together, the two lawsuits put unusual pressure on a product that has long been considered a cornerstone of Costco’s brand identity. The rotisserie chicken functions as a loss leader — intentionally priced low to drive store traffic — and sells in the hundreds of millions globally each year.
Costco has not publicly detailed its response to the latest filing. For now, the case remains in its early stages. But for a product that built its reputation on consistency and trust, two legal challenges in quick succession mark a notable shift in the conversation.
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