Lawyer loses lawsuit over Costco shrimp, plans to appeal
Filed under: Food, Ripoffs and Scams, Shopping, Consumer Complaints
A few months ago, Marc Verzani, an attorney based in New York City, filed a lawsuit against Costco, alleging that the discount superstore was shorting its customers on its $9.99 shrimp trays. District Judge Judge Colleen McMahon rejected the lawsuit, stating that it was "simply ridiculous."On one level, you have to feel bad for lawyers. Barely a year ago, there was tons of money floating around and a law degree was second only to an MBA as a license for snatching it up.
As massive companies inked gargantuan deals, battles over little details put millions of dollars into the pockets of the lawyers who were tasked with greasing the skids of commerce. For Verzani, a real estate and general business lawyer, it was a lucrative time, indeed.
Fast forward a year and things are a little tougher. While the failure of numerous companies has left the field ripe for lawsuits, the sad fact is that it's getting harder and harder to find someone who is able to sign the check on a juicy settlement. Of course, places that focus on offering bargains to struggling consumers are doing better than most. Places like Wal-Mart, Dollar General, Target ... and Costco.
As the old saying states, "idle hands are the devil's workshop." This goes double for idle minds, particularly when those minds rest between the ears of a New York lawyer. One day, after buying a one-pound "shrimp platter" from Costco, Verzani apparently got the feeling that the shrimp were somewhat lacking. Upon weighing the little crustaceans, he noticed that there were roughly 13 ounces of shrimp, not the 16 ounces that he feels he was guaranteed.
At this point, the few people who were obsessed enough to continue might look at the packaging, re-read the words "One pound shrimp tray," and assume that Costco's wording meant that the package -- including the cocktail sauce, lettuce, and lemon slices -- weighed one pound.
While some might feel that the title was slightly deceptive, the vast majority would probably accept that Costco was well within its rights to fill out the last few ounces with less expensive accoutrements, particularly given that they were, after all, serving a fully-prepared, nicely-plated, highly-perishable commodity. Given the amount of work that went into each tray, and the amount of shrimp that the store probably had to throw away, their profit margin on the dish was probably paper-thin.
However, for Verzani, intrepid defender of the law, such mealy-mouthed justifications were totally insufficient. No, he decided that this required his keen mind, sharp legal skills, and dogged determination.
Never mind that the overcharge -- if, indeed, there was an overcharge -- only amounted to $1.25 to $1.69 per tray. Never mind that Costco was, as previously mentioned, probably operating at a paper-thin profit margin. Never mind, in fact, that any remotely savvy consumer is aware that preparation-heavy foods always cost a lot more. Verzani was on the job, and he was going to get his pound of flesh. Or shrimp, as the case may be.
Verzani hired fellow lawyer William Weinstein, and the two embarked on an epic adventure to discover just how much shrimp is in a Costco shrimp tray. After conducting a coast-to-coast investigation, they found that all Costcos put roughly 13 ounces of shrimp into their one-pound shrimp trays.
Calculating out that Costco's 410 stores sell between 500 and 1,000 shrimp platters per week, Verzani decided that the company was cheating its shrimp-munching customers out of between $13 million and $40 million per year.
Their mouths watering at a truly gargantuan payday, Verzani and Weinstein sued Costco for compensatory damages, disgorgement, and restitution. They also sought an injunction that would keep Costco from selling the platters until they are relabeled.
Although the two filed their lawsuit in March, it was finally settled at the end of June, when Judge McMahon rejected it, noting that "a reasonable consumer would understand that purchasing a ready-to-serve, prepackaged convenience item is different from purchasing shrimp at a fish counter, cocktail sauce in a jar, and a lemon at the produce department."
Verzani and Weinstein have decided to appeal, adding untold thousands to Costco's tab. As those charges work their way down into the price of the store's tomatoes, carrots, and shrimp, it's easy to imagine how pleased most consumers will be to have a staunch defender like Verzani on their side.
With this case once again wending its way through the courts, perhaps it is time to reconsider punishment for frivolous lawsuits.
Personally, I propose the stocks: there's nothing like being pelted with food in a public setting to inspire some serious behavior adjustment. Who knows, Verzani and Weinstein might even get their last few ounces of shrimp.
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Stores Closing Their Doors
Just as Costco faces financial troubles, they get slapped with a lawsuit! Browse through this gallery to find out which stores are closing their doors.
Paul Sakuma, AP
Paul Sakuma, AP
Reader Comments (Page 1 of 5)
8-11-2009 @ 7:06PM
Hale said...
In a frivolous lawsuit, the plaintiff's lawyer should get NOTHING, and both the plaintiff and THE PLAINTIFF'S LAWYER should be liable for all expenses by the court and the defense.
Reply
8-11-2009 @ 8:29PM
paymyownway said...
COSTCO is a company which simply has turned THIEVING into an ART FORM.
I AGREE COMPLETELY with this lawsuit. COSTCO was just found guilty of backdating memberships, to CHEAT the customers.
COSTCO IS DISHONEST IN SO MANY WAYS. THEY SHOULD BE ASHAMED!
SIGN ON SHRIMP TRAY SHOULD HAVE READ:
"5 OUNCES SHRIMP, 4 ounces sauce, 4 ounces lettuce, 3 ounce plastic throw away tray!"
8-11-2009 @ 8:27PM
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8-11-2009 @ 9:31PM
Lisa said...
This is mainly poor wording. In real life 16 ounces of fresh cooked shrimp is about 13 counces cooked. The label is a gray area. When you buy frozen raw shrimp that are freeze frozen and sprayed with water to prevent freezer burn you are paying by the pound for the water too.
Costco should be more specific in their labeling but the consumer can clearly see what is there and there are store employees that they can ask questions of so I am glad the judge tossed the case out.
8-11-2009 @ 9:51PM
wcm said...
well stated hale...the loser(lawyer) should have to pay the legal expenses for both sides....that would reduce the attitude of running it up the flagpole to see who might luck up even though there is no real case
8-11-2009 @ 10:12PM
blair said...
THis is total BS - they are DECEPTIVELY LABELING the package - anyone who tries to say otherwise IS A LIAR...A consumer - SHOULD NOT have to go through a store - read a simple package, and spend hours, deciphering each one - OK -ONE pound of this minus that, plus this - All of you who thinks its wrong - just spend your precious minutes - NOT TRUSTING any labels - walking back and forth to the scales - and waste precious minutes of your life - discovering lies
8-11-2009 @ 10:15PM
blair said...
AND - when you go to the deli - you expect them to weigh the meat in the container???? HUH? HUH? DO YOU????
thank you defuivxx for that additional TRUTH...
8-12-2009 @ 9:23AM
JACK said...
THEN SOMEONE SHOULD KILL YOU AND KILL THE JUDGE AND BLOW UP ALL THE COURT HOUSES IN AMERICA YOU DOOSHBAGG
8-11-2009 @ 10:41PM
blair said...
This reminds me - LOL - next time i get sliced cheese from a deli - im going to tell them to eat those little pieces of paper they weigh along with the cheese - before they place it in the baggie - I've already been getting ripped off in another way?
TEAM - together everyone achieves more
THE GREAT AMERICAN CHEESE REVOLT -
8-12-2009 @ 3:28AM
Sue said...
This is ridiculous! He needs to do more shopping. A tray includes all it's contents.
8-12-2009 @ 10:36AM
Julia said...
The consumer is buying a 4 pound shrimp platter, not 4 pounds of shrimp. This lawsuit is causing Costco to raise prices elsewhere to make up it's lawyer fees.
There are far too many greedy idiots out there. Again, a 4 pound platter is $9.99 and that includes everything on the platter. Four pounds of shrimp over the "deli" counter costs $X.XX per pound. Get it? So no one is being ripped off, they just don't understand the difference between an over the counter/by the pound sale versus the sale of a platter of food.
So, if you agree with this lawsuit, then you agree to pay more for everything else at Costco.
One more thing, Costco rectified the backdating of memberships long before that lawsuit ever went to trial. Business is business folks. Buyer beware? Yes. Be a smart consumer. Costco has been rewarded time and time again for the best quality meats, produce and more.
8-12-2009 @ 3:26PM
Jack said...
TRU THAT, BUT FRANKLY I AM ONE OF THOSE THAT EXPECTS 16 OZ OF SHRIMP
SO PERHAPS THAT IS THE COST OF DOING BUSINESS LIKE COSTCO? BETTER DISCLOSURE IN FOOD LABELING!!!! THAT IS ALL.
OH AND SOME LEGAL FEES THAT ARE ALWAYS IN THE BUDGET I BET
I DON'T BUY SHRIMP THERE, BUT IF I DID I'D EXPECT COCTAIL SAUCE ON A READY TO EAT SHRIMP TRAY/PLATTER JUST LIKE I WOULD KETCHUP IN A BURGER. NOW IF IT IS NOT A PLATTER OR READY TO EAT THEN IT AINT A BURGER THEN YOU BUY PATTIES BUNS AND KETCHUP.
8-11-2009 @ 8:02PM
defuivxx said...
I have to go with the lawyer on this. If I buy a one pound anything I expect a pound of product not packaging. The reason a baker's dozen is thirteen and not 12 is because baker's didn't want to look like they were ripping people off. Deli meat is somewhat prepared should they weigh product with their finger on the scale because you are paying for them to slice it. Taking a dollar from a person isn't a lot so it is ok to take a dollar from millions of people.
Reply
8-11-2009 @ 8:09PM
Tom said...
$1.50 may not seem like much, buts its off a $10 tray not a $200 item. That 15% for those who can't count. A rip off is a rip off. If it were once or twice ok, but if its rampent they should be made to pay.
Reply
8-11-2009 @ 8:11PM
Helen said...
I love Coscos. Why do they have to screw things up by being greedy. Businesses should know that they never get away with this stuff. Their mistake is thinking the customer is stupid.
Reply
8-11-2009 @ 8:16PM
Barry said...
Bruce Watson is an idiot. One of the reasons we end up with jokers like Bernie Madoff being able to rip off billions from people is the fact that consumers are being turned into wimps. If some one sell you something and and labels it at one pound expect a pound. That doesn't seem to be too hard a point to comprehend for people that aren't afraid to stand up for themselves. Perhaps Watson should look into having a spine transplanted into himself !!
Reply
8-11-2009 @ 9:18PM
Steve said...
I have to agree with the Judge.....When I buy a package showing the "items" in the container weighs 16 ounces, I'm anticipating some weight being the "condiments" as it were.
These lawyers obviously have no idea what they're talking about and not enough to do. That kind of tells you what kinds of lawyers they are to begin with.
Finally, if I were Costco, I would turn around and sue their asses for this frivilous lawsuit....recovering expenses AND damages.
Reply
8-11-2009 @ 8:29PM
Diane said...
I agree with the lawyer. I am the consumer and expect one pound of shrimp when the pkg states one pound. If they want to sell the side items alone that is their business. I am a member and have felt for a long time they cheat people. Their produce rots within 24 hours of leaving the store. Thanks to any and all lawyers who are trying to protect the rest of us.
Reply
8-12-2009 @ 7:25PM
jmk said...
well i guess we need to go after every place that sells ready to eat food
so if you go to mcdonalds and order a 1/4 pound hamburger you think that you shoulhd have a 1/4 lb of meat on your bun after it is cooked
ready to eat food is sold on a precooked weight basis so get over it
8-11-2009 @ 9:51PM
labluver said...
You do realize that Costco has the best return policy for any store out there. If you feel your produce, our flowers, your vitamins, diet pills, clothes, etc are not lasting as long as you'd expect, don't fit well, aren't letting you lose the weight you think you should be losing, you can take whatever is left back and they'll refund you. They have a heck of a lot better customer service then Sams, BJ's, Wal-mart, or any other store I've been too! Oh, and by the way... the return policy goes for the membership too. If you are unhappy with them after 6, 7, 8 months, they'll give you your membership costs back as well. So stop complaining over something that you can actually do something about!