Lawsuit filed against Costco’s $5 rotisserie chicken supplier for alleged misconduct

Costco’s renowned rotisserie chicken has become embroiled in a legal battle. A recent lawsuit claims that the supplier behind the popular $4.99 chicken faces allegations of a salmonella outbreak. The lawsuit, filed by Lisa Taylor in Seattle federal court, asserts that Costco’s Nebraska processing plant shows evidence of Salmonella contamination. According to a Farm Forward study from December, the Lincoln Premium Poultry plant, processing over 100 million chickens annually, fails to meet USDA safety standards, with significant levels of whole chickens and chicken parts testing positive for salmonella.

Taylor claims to have regularly purchased Costco rotisserie chickens, believing they were preservative-free. She alleges that Costco did not disclose the risk of salmonella contamination, posing a real danger to consumers and violating their trust. Seeking compensatory and triple damages for customers who purchased the product since January 2019, Taylor accuses Costco of violating consumer protection laws and breaching the implied promise of safe consumption.

With global sales of over 157 million birds in 2025, Costco’s Kirkland Signature rotisserie chicken is a popular choice for shoppers. Despite its affordability, recent legal challenges have put a spotlight on the product’s labeling and safety standards. Last month, two customers in California filed a lawsuit against Costco, claiming that the preservative-free claims for the chickens were misleading. The presence of sodium phosphate and carrageenan, used as preservatives in the chicken, contradicts the advertising portrayal of preservative-free products.

While the FDA considers sodium phosphate and carrageenan generally safe, there are concerns regarding their impact on individuals with certain health conditions. Sodium phosphate, while safe for most healthy individuals, may pose risks for those with kidney disease due to potential mineral imbalances and other health issues. Both ingredients are used in the rotisserie chicken to enhance moisture retention, texture, and consistency during cooking. The FDA has approved food-grade carrageenan, but some studies have linked it to digestive problems and inflammation.

Responding to inquiries, a Costco spokesperson clarified that they removed preservative-related statements from their signage and online content to maintain labeling consistency. However, they stand by the use of carrageenan and sodium phosphate to ensure product quality. Despite these reassurances, legal challenges continue to question the oversight and transparency regarding Costco’s rotisserie chicken production. Consumers expect clear and accurate information about the products they purchase, especially those concerning food safety. The ongoing legal battle highlights the importance of upholding standards and providing customers with truthful information about the products they consume.