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Consumers who purchased nonprescription Costa sunglasses before Jan. 1, 2016, and paid a warranty fee to repair or replace those sunglasses between Aug. 20, 2013, and Feb. 29, 2020, due to a manufacturer’s defect may be eligible to claim a cash payment from a class action settlement.
Costa Del Mar Inc. agreed to pay $4.1 million to settle a class action lawsuit alleging it charged consumers a warranty fee for repairs or replacements it should have provided at no cost under federal law.
The company faces a similar class action in Florida.
Who qualifies for the settlement?
Class members must meet all of the following criteria:
- They are a citizen of the United States.
- They purchased a pair of nonprescription Costa sunglasses before Jan. 1, 2016.
- They paid Costa a warranty fee to repair or replace those sunglasses between Aug. 20, 2013, and Feb. 29, 2020, due to a manufacturer’s defect.
How much can class members receive?
The total settlement fund is $4,095,000. However, the settlement administrator will reduce this amount by attorneys’ fees and expenses, and settlement administration costs before distributing payments to class members.
Eligible class members will receive a pro rata cash payment for each eligible repair or replacement for which they paid a warranty fee. The specific amount each class member receives depends on the number of valid claims and the net settlement fund after the deductions. Each qualifying repair or replacement (as identified by a unique number in Costa’s records) entitles the class member to one share of the settlement fund.
No action needed to receive payment
Eligible class members do not need to submit a claim form to receive their payment. The settlement administrator will use Costa’s records to identify class members and automatically issue payments after the settlement receives final court approval. Class members can select their preferred payment method online or via email (if they received a notification email).
Class members whose contact information has changed since their warranty claim should notify the settlement administrator to ensure they receive payment.
Settlement administrator's mailing address: Smith v. Costa Settlement Settlement Administrator P.O. Box 4290 Portland, OR 97208-4290
Payout options
- Zelle
- Venmo
- PayPal
- Paper check
If class members do not select a payment method, they will receive a paper check.
$4.1 million settlement fund breakdown
The $4,095,000 settlement fund will cover:
- Settlement administration costs: $500,000 initial payment
- Attorneys' fees and expenses: $1,200,000
- Payments to approved class members: Remainder of the fund after the above deductions
After the settlement administrator distributes all payments, it will donate any residual funds to Captains for Clean Water (subject to court approval).
Important dates
- Deadline to opt out: Oct. 8, 2026
- Final approval hearing: Jan. 20, 2027
When is the Smith v. Costa Del Mar Inc. payout date?
The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Costa Del Mar Inc. sold sunglasses with a lifetime warranty but charged customers a warranty fee for repairs or replacements due to manufacturer’s defects. The lawsuit claimed this practice violated federal law, which requires warrantors to remedy defects without charge.
Costa denied any wrongdoing or liability but agreed to settle to avoid the risks and costs of continued litigation.
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