Michael Kors class action settlement: Are you eligible for a store credit?

Michael Kors has agreed to a settlement in a class-action lawsuit alleging it engaged in misleading advertising practices.

The lawsuit, filed in 2023, alleged that the retailer "inflated" prices on its merchandise to make sales look like a better deal, according to the complaint. Michael Kors has not admitted any wrongdoing, but agreed to pay an undisclosed amount to resolve the claims, according to the settlement website.

The settlement, which is subject to court approval, would give qualifying customers up to $30 credit at its stores. But the deal has the potential to be rejected by a judge as it could be seen as awarding Michael Kors with additional sales despite its alleged wrongdoing, legal experts said.

The clothing, handbag and accessory brand has four stores on Long Island: in Manhasset, Deer Park, Riverhead and at Roosevelt Field mall, according to its website.

Emails to representatives for the company, the law firm Kelley Drye & Warren, and the plaintiffs' law firm, Lynch Carpenter, were not returned. 

Here are six things to know about the Michael Kors settlement.

What is the settlement about?

A lawsuit filed in May 2023 in the U.S. District Court for the Southern District of New York alleges that the designer retailer engaged in "a false reference pricing scheme" by artificially inflating the prices of its goods to make discounts appear larger, according to the complaint.

Who qualifies for a store credit?

People who made a purchase at a Michael Kors outlet store between May 10, 2019, and Nov. 14, 2025, may be eligible to receive store credit. Those eligible must complete a claim form online or by mail, unless they have a California or Oregon mailing address and have a KorsVIP account, according to the settlement website.

Do class-action settlements result in big payouts for consumers?

Generally, no. 

Class-action settlements with retailers tend to offer small payouts to impacted consumers, while the lawyers who levy the suits stand to gain the most, said business and commercial attorney Jeffrey Benjamin, principal and partner at the Linden Law Group in Manhattan. 

“In the end, it’s the lawyers that win," Benjamin said. "It’s the lawyers that exposed the false advertising. The individual consumer doesn't get very much."

What makes this settlement unique?

While class-action suits and settlements involving retailers or service providers is not uncommon, Benjamin said he hasn't seen a case where payouts to impacted consumers were done with store credit. 

“To me, it seems it’s a better settlement for the defendant [Michael Kors]," he said. "A store credit gets the customers to come back to the store and spend more money on another item."

The National Association of Consumer Advocates, a Washington, D.C.-based consumer rights nonprofit, said it prefers to see cash refunds in settlements, but "coupon-like" payments can sometimes be appropriate.

"Our view is that they should be rarely used, refunds are better, but there are circumstances where they would be acceptable," Christine Hines, senior policy director for NACA said in an emailed statement.

"Class-actions are a critical device for American consumers, workers, and small businesses to seek remedies when ripped off or exploited by corporations," Hines added.

How much store credit can I get?

Those eligible can get a merchandise gift certificate of up to $30 for Michael Kors outlet stores, if the court approves the settlement. The court will hold a fairness hearing on March 27 to determine whether the settlement should be approved, according to the settlement website. 

When do I need to submit a claim form?

Those eligible need to submit a claim form online or by mail by March 6, according to the settlement website. You can also choose to object to or exclude yourself from the settlement by that deadline.