Claims Under State Law and Health Concerns
The complaint asserted that the company failed to act in violation of California state law, which requires employers to address workplace sexual harassment and protect employees from retaliation.
Villalobos also contended that Costco failed to accommodate her hereditary angioedema, a medical condition that can trigger severe and potentially dangerous swelling episodes.
The case placed a spotlight not only on allegations of harassment but also on how employers respond when concerns are raised — and whether reporting misconduct becomes a risk in itself.
With the Costco Sex Harassment Suit deal now in motion, the parties appear poised to close the matter without further litigation. Neither side disclosed financial terms or additional conditions tied to the resolution.
