A new class action lawsuit claims Levi Strauss & Co. (LS&Co.) has reserved approximately $80 million plus interest in tariff refunds for its own use instead of returning the money to consumers "who funded the tariff payments in the first place."
Plaintiff Deborah Brucker filed the lawsuit against LS&Co. in the U.S. District Court for the Northern District of California on Oct. 20.
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LS&Co. is the latest apparel giant to face a class-action lawsuit related to President Donald Trump's tariff policies and subsequent refunds. Nike , Lululemon, Costco and Shein are facing similar class-action lawsuits.
The Supreme Court ruled on Feb. 20 that Trump's International Emergency Economic Powers Act (IEEPA) tariffs were unlawful . U.S. Customs and Border Protection (CBP) launched the Consolidated Administration and Processing of Entries (CAPE) portal on April 20 to process IEEPA-tariff refunds, which began to hit importers' accounts in May.
Brucker's claim states that within days of the administration's "broadest IEEPA tariff proclamation," Levi's CEO Michelle Gass said the company would be "surgical" with price hikes on its jeans rather than making across-the-board changes in response to the tariffs.
The lawsuit states that one year later Levi's executives said they were taking "targeted pricing action" to "offset the impact of tariffs." The pricing actions were described as part of LS&Co.'s "tariff mitigation" plan and as "leveraging that pricing power" on higher-tier products while taking "more modest pricing" on entry-level items.
The lawsuit cites The Wall Street Journal's report that Levi's raised U.S. prices in January 2026. This included a $10 increase for Levi's Ribcage Straight Ankle women's jeans and a $5 increase for original-fit men's jeans.
It goes on to say that months after the Supreme Court invalidated the tariffs and more than a year after LS&Co. began collecting the corresponding price increases from consumers, it has not committed to return any of it to the consumers who paid extra.
LS&Co. reported Q3 2026 earnings on Oct. 7. The company disclosed the receipt of $79 million in tariff refunds and $5 million in interest income from tariffs and described redeploying a "substantial majority" of the refunds back into business.
"In addition to increased marketing investments, we are putting those funds to work behind sharper value for consumers during key holiday promotional moments and enhanced supply chain capabilities to strengthen our competitive position and support sustainable long-term growth," Gass said during the earnings call.
The plaintiff brings four claims against LS&Co: unjust enrichment, money had and received, California's Unfair Competition Law and fraudulent misrepresentation. The lawsuit seeks repayment of the tariff portion (including interest) of consumers' purchases and other damages.
"Levi has been refunded, but consumers have received nothing. Levi has not refunded, credited or otherwise returned to its customers any portion of the tariff-justified price increases it collected, has not committed to do so, and has made clear that the disposition of the refund proceeds will turn on Levi's own business considerations rather than on who actually paid the tariffs," the lawsuit states.
Levi's declined Sourcing Journal's request for comment.
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