Populist litigation is threatening to expropriate legitimate corporate policy arbitrage. A class-action lawsuit filed in federal court demands that Costco surrender its share of the $166 billion in refunds generated by the Supreme Court striking down the executive IEEPA tariffs.

Retailers like Costco successfully absorbed the supply chain shocks of the Trump administration's trade war, passing costs along to preserve margins. Now, plaintiffs argue the company stands to reap a windfall by retaining the refunded duties. This fundamentally misunderstands risk allocation.

Capital assumed the operational burden of the tariff disruption. The subsequent legal victory against Customs and Border Protection belongs entirely to the balance sheet that financed it. Yielding these refunds to consumers sets a dangerous precedent, penalizing the very logistical resilience that kept retail shelves stocked.