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Lawsuit alleges Casey’s didn’t apply advertised in-store discounts

In one court document, plaintiff was allegedly charged $7 in a ‘2 for $4’ promotion on 23.5-ounce cans of Four Loko malt beverages
Images from court documents in a lawsuit filed against Casey’s.
Images from court documents in a lawsuit filed against Casey’s. | Casey’s; inset images: Iowa District Court

A lawsuit filed in Iowa alleges that Casey’s General Stores advertised in-store discounts on merchandise to customers but didn’t apply those discounts at the point of sale, according to documents filed in the United States District Court for the Southern District of Iowa Central Division.

The suit was filed by Kit Mason of Allerton, Wayne County, Iowa, against Casey’s Retail Co., Casey’s General Stores Inc. and Casey’s Marketing Co. It requests that the suit “be a proper class action” as the aggregate number of members in the proposed class is 100 or more and the “matter in controversy exceeds the sum or value of $5,000,000, exclusive of interest and costs,” according to court documents.

Casey’s is based in Ankeny, Iowa.

Court filings include eight examples of instances where Mason allegedly did not receive advertised discounts of $3, $3, $3, $1.50, $1.60, $7, $3 and $1.50. “The average of the discounts in these examples is approximately $2.76,” the lawsuit said.

  • Casey's General Stores Inc. is No. 3 on CSP's 2025 Top 202 ranking of convenience-store chains by store count.

“If each of the alleged 2,500 Casey’s stores failed to give just one $2.76 discount per day each day from the date of the beginning of the class period to the date the petition was filed, compensatory damages would total $5,043,900,” the lawsuit said. “Further, the petition seeks attorneys’ fees and costs, including the costs of class notice and pre-suit investigation.”

Examples in court documents include:

Mason on July 10 visited a Casey’s in Humeston, Iowa, which had a “2 for $4” promotion on 23.5-ounce cans of any variety of Four Loko malt beverages. Mason was charged $7, according to court documents (images above).

Also on July 10, Mason visited a Casey’s in Corydon, Iowa, which had a “2 for $6” promotion on 23.5-ounce cans of Smirnoff Ice alcohol beverages. Mason was charged $7, according to court documents.

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

The lawsuit, which was originally filed in Polk County District Court, has been moved to federal court, according to the Iowa Capital Dispatch.

The lawsuit seeks damages “for fraudulent misrepresentation, unjust enrichment, negligent misrepresentation, and unfair or deceptive acts,” according to the Capital Dispatch. 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.

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