Lawsuit: Casey’s ‘overcharges’ by not honoring advertised sale prices

The owners of the Casey's convenience store chain are facing a lawsuit over in-store promotions and the prices charged to customers. (Photo illustration by Clark Kauffman, Iowa Capital Dispatch, with receipt and signage from U.S. District Court filings)

The Casey’s convenience-store chain is facing a potential class-action lawsuit alleging it overcharges consumers by advertising in-store discounts that aren’t applied to purchases at the cash register.

The lawsuit, filed in U.S. District Court for the Southern District of Iowa, names Casey’s Retail Co., Casey’s General Stores Inc., and Casey’s Marketing Co. as defendants. The companies operate more than 2,500 convenience stores in Iowa and 15 other states.

In court filings, Casey’s has yet to respond to the basic allegations in the lawsuit, but has asserted that if each of the chain’s 2,500 stores “failed to give just one $2.76 discount per day” from August 2023 to the present, the compensatory damages in the case would total $5,043,900.

In a written statement, a spokesperson for Casey’s said, “We are aware of the allegations and intend to vigorously defend against them. We will respond formally through the legal process.”

Attorneys for the plaintiff, Kit Mason of Allerton, are seeking class-action status for the lawsuit, alleging Casey’s uses in-store signage at store locations to promote product discounts that the stores then fail to apply to customers’ purchases.

Among the alleged examples cited in the lawsuit:

— On July 10, 2025, Mason visited a Casey’s store in Humeston, where the store promoted a “2 for $4” special on 24-ounce cans of Four Loko flavored alcoholic beverages. At the cash register, the lawsuit claims, Mason was charged $7 rather than $4.

— On July 20, 2025, Mason visited a Casey’s store in Corydon, where the store promoted a “2 for $6” special on 24-ounce cans of Smirnoff Ice alcoholic beverages. At checkout, Mason was allegedly charged $7 rather than $6.

— On Aug. 19, 2025, Mason visited a Casey’s store in Urbandale, where Blue Moon beverages that were normally priced at $3.50 and $4.29 were promoted through a discount that offered $3 off the combined purchase of any three 19-ounce cans. At the cash register, the $3 discount was not applied, the lawsuit claims.

Each of the in-store signs promoting the discounts allegedly state the “instant rebates” are “automatically given at register,” with no indication that membership in the Casey’s Reward Program is required.

While most of the alleged examples cited in the lawsuit pertain to alcoholic beverages, some are specific to food items, such as a “2 for $5” special on bagged candy. The lawsuit claims that at the cash register, the bags rang up at $5.99 each.

“Similar misleading in-store advertisements were present across the defendants’ network of stores …,” the lawsuit alleges, including but not limited to those in Iowa, Nebraska, Minnesota, Missouri and Wisconsin.

According to the lawsuit, Casey’s competitors, such as Kum & Go, Kwik Trip and Kwik Star, have similar in-store promotions but their advertised sale prices are reflected in the customers’ final bill.

The lawsuit seeks damages for fraudulent misrepresentation, unjust enrichment, negligent misrepresentation, and unfair or deceptive acts.

The lawsuit also seeks an injunction barring Casey’s from “not applying the advertised discounts at the register as promised,” and prohibiting Casey’s from collecting taxes on the amounts that should have been discounted.

The lawsuit was originally filed in Polk County District Court before being moved this week to federal court. The law firm that filed the lawsuit is Shindler, Anderson, Goplerud & Weese of West Des Moines.