Costco sued for $14m after liquor cabinet falls on shopper in California

What happened at Costco’s Santa Rosa warehouse on March 22?

A woman in northern California is suing Costco Wholesale Corporation for over $14 million after a liquor cabinet display allegedly fell on her while shopping, causing serious injuries including a traumatic brain injury. The incident took place on March 22, 2025, at a Costco warehouse in Santa Rosa. According to a lawsuit filed in federal court, the shopper, Sadie Novotny, sustained multiple injuries and was hospitalized within hours of the incident.

Initial court filings, obtained through Alameda County Superior Court before the case was moved to federal jurisdiction, allege that the liquor cabinet had been placed on a defective or worn wooden pallet in a way that posed an unreasonable hazard to customers. Novotny’s legal team argues that Costco failed to properly inspect, maintain, or secure the display, thereby breaching its duty of care to shoppers.

The case was transferred to the U.S. District Court for the Northern District of California at Costco’s request. A case management conference is scheduled for September 4, 2025, at the San Francisco Federal Courthouse.

What injuries does the shopper claim—and how much is she seeking?

The lawsuit filed by Sadie Novotny details extensive claims of both physical and emotional trauma resulting from the display collapse. According to court documents, Novotny reported feeling “really bad” shortly after the cabinet fell and was taken to the hospital by her husband about an hour later. Medical personnel diagnosed her with a concussion, and her condition has since included persistent headaches and vision problems, as described by her attorney Claude Armand Wyle.

The legal claim includes $9 million in damages for pain and suffering, $5 million for emotional distress, and additional compensation for medical costs and income loss. These damages include an estimated $2 million in current and future medical expenses, as well as $2 million in lost wages and future earning potential. The filing also requests further compensation for the loss of household services.

Novotny’s legal team asserts that her injuries are both “severe and permanent,” with an uncertain prognosis pending further neurological evaluation.

Why is video footage at the center of this dispute?

A key point of contention in the lawsuit is surveillance footage that reportedly captured the incident. According to attorney Claude Wyle, a Costco employee acknowledged the existence of such video but refused to release it outside formal discovery procedures. Wyle told ABC News that he was informed the footage did not match his account of the event, yet was denied access to independently review it.

“She said, ‘You can only get that video through discovery,’” Wyle said. “That meant I had to file a lawsuit. I couldn’t investigate any further. I was stuck. If I wanted to get to the truth, I had to file a lawsuit.”

As of June 11, 2025, Costco has not publicly commented on the litigation or the existence of video evidence.

What are the legal claims being brought against Costco?

The lawsuit accuses Costco Wholesale Corporation of negligence and premises liability. The core legal argument is that the liquor cabinet display was unreasonably dangerous due to its placement on an unstable pallet and inadequately secured positioning. The complaint contends that Costco had ample opportunity to detect and address the hazard before the incident occurred.

Specifically, the complaint claims that the store breached its obligation to maintain safe premises, failed to warn customers of a known risk, and neglected to adequately train its staff on how to safely set up heavy merchandise displays. The cabinet itself was reportedly constructed of wood and glass and designed for consumer use, adding to the weight and potential impact severity.

The legal filings further state that the cabinet had “thin legs” that offered insufficient support and that the pallet it sat on was in visibly worn condition—details allegedly known or knowable to Costco staff at the time.

What is the timeline of the case and expected developments?

The initial lawsuit was filed in April 2025 in Alameda County and was moved to federal court on Costco’s motion in early June 2025. U.S. District Judge overseeing the matter has set the first case management conference for September 4, 2025, in San Francisco.

In the months ahead, discovery will begin, which may include deposition of witnesses, expert evaluations of Novotny’s medical condition, and formal requests for video footage. Legal analysts suggest the discovery phase may also reveal whether any internal Costco safety audits flagged risks associated with the display cabinet prior to the incident.

At this point, no settlement offers or motions to dismiss have been made public. If the case proceeds without settlement, a trial could occur in mid to late 2026.

What is the broader context—have there been similar incidents?

While major retailers like Costco have generally strong records on customer safety, there have been isolated instances over the years of merchandise-related accidents. Industry-wide, display-related injuries remain a relatively rare but serious category of premises liability claims.

Costco, one of the largest wholesale retailers in the world, operates more than 850 warehouses globally. Its large-format stores regularly feature oversized and heavy merchandise—furniture, electronics, liquor displays—often stocked on pallets to reduce labor costs and streamline logistics. While efficient, such formats can pose risks if display integrity is compromised by pallet fatigue, poor maintenance, or staff oversight.

Legal experts note that large retailers are expected to adhere to Occupational Safety and Health Administration (OSHA) guidelines, state safety codes, and internal retail protocols to mitigate such risks. A judgment or settlement in this case could lead to further scrutiny of in-store display practices across the retail sector.

What could this lawsuit mean for Costco and the retail industry?

If the court rules in favor of Novotny or if a significant settlement is reached, Costco could face reputational and operational repercussions. Beyond financial damages, such a case may prompt the company to revise safety inspection procedures, retrain warehouse staff, and possibly modify how heavy merchandise is displayed.

Institutional sentiment remains cautious. While investors typically do not react strongly to individual injury claims, a high-profile case like this—particularly if it gains national media traction or draws regulatory review—could affect Costco’s risk assessment profile and insurance premiums.

Costco stock (NASDAQ: COST) has so far remained stable in the weeks following the lawsuit’s transfer to federal court, though legal analysts warn that a drawn-out discovery process and potential public pressure could trigger scrutiny from both consumer advocacy groups and Wall Street observers.

Who is Sadie Novotny and what happened at Santa Rosa Costco?

Sadie Novotny is a resident of Sonoma County, California, and a regular Costco shopper. On March 22, she and her husband visited the Costco warehouse in Santa Rosa, where they reportedly were browsing a liquor cabinet on display. According to the lawsuit, the cabinet unexpectedly tipped over, striking Novotny and pinning her to the ground.

She reported immediate pain and later received a medical diagnosis of a concussion. Her attorney claims that she continues to experience residual neurological symptoms.

This incident follows a broader trend of personal injury lawsuits testing the limits of premises liability, especially in large-format retail environments where displays are both functional and commercial. As the case progresses, it may raise important legal and public safety questions about the obligations of national retailers toward their customers.