Myrtle Transou v. Costco Wholesale Corporation

District Court, N.D. Indiana·Decided July 28, 2026·No. 2:24-cv-00357·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION

MYRTLE TRANSOU, ) ) Plaintiff, ) ) v. ) Case No. 2:24-cv-357-AZ ) COSTCO WHOLESALE ) CORPORATION, ) ) Defendant. ) )

OPINION AND ORDER This matter is before the Court on Defendant Costco Wholesale Corporation’s Motion for Summary Judgment [DE 33], filed on December 19, 2025. Plaintiff Myrtle Transou filed her response in opposition on February 1, 2026, and Defendant filed a reply on February 24, 2026. DE 39. The parties previously consented to my jurisdiction pursuant to 28 U.S.C. § 636(c). DE 16. For the reasons outlined below, the Court GRANTS Defendant Costco Wholesale Corporation’s Motion for Summary Judgment [DE 33]. Background This is an employment discrimination case in which Plaintiff Myrtle Transou claims she was discriminated against by her employer on account of her age, sex, and race. The parties agree as to most of the relevant facts of this case, but they have different interpretations of what transpired and why. The Court will summarize the facts which are not in dispute and will note the material ones that are. Plaintiff is currently 63 years old and has worked for Defendant Costco for more than 25 years at the company’s stores, commonly known as warehouses. DE 37 (Pl.’s Resp. to Def.’s Stmt. of Facts) at ¶ 4. In July 2015, Transou transferred from a

warehouse located in Chicago to one located in Merrillville, Indiana. Id. at ¶ 5. By the beginning of 2017, Transou’s position had changed from “front end manager” to “receiving manager” at the warehouse, although if it is unclear if this was a promotion or lateral move within the hierarchy. Id. In July 2020, Tom Cimino transferred to the Merrillville warehouse as its general manager. Id. at ¶ 6. Shortly after Cimino’s arrival at the store, he and

Transou had a conversation about rotating to a different position and Transou said she had a preference to stay in her current role until she retired “in a couple of years.” Id. at ¶ 7. She then rotated to the position of administrative manager where she reported to an assistant general manager who in turn reported directly to Cimino. Id. at ¶ 8. Things appear to have gone smoothly until December 2022 when two other employees filed a complaint against Transou relating to rude behavior and favoritism. Id. at ¶ 11.

The complaint was investigated by the general manager Cimino and Plaintiff admitted she had said the word “bullshit” (in her view, as a play on words relating to a co-workers bachelor of science (i.e., “BS”) degree, not an expletive), had invited some employees to her housewarming party, and received massages from another employee who ran a massage business on the side. Id. at ¶ 12. There does not appear to have been any specific finding of wrongdoing by Costco, and Plaintiff received what appears to have amounted to a warning, a “Letter to File” reminding her of her obligation and agreement to “fully comply with the [Costco] Standard of Ethics” and that failure to do so “may result in discipline up to and including demotion or

termination of [her] employment.” Id. at ¶ 13. Plaintiff denied the allegations of favoritism or inappropriate behavior in the employee complaint at the time and continues to for purposes of this motion. Almost a year later, in October 2023, when she was approximately 60 years old, Transou applied for an assistant general manager position at the warehouse where she worked. Id. at ¶ 14. Prior to applying, Transou spoke with Cimino. He told

her there was “no reason” for her not to apply, but also that if he was choosing between a person who was planning to retire and a person who was not planning to retire, he would select the person not planning to retire. Id. at ¶ 17. The assistant general manager position required that candidates have the necessary experience, skills and certifications, including a “proof of readiness rating,” which meant that a candidate had been marked as “ready” for promotion as part of their regular performance review by the employee’s direct manager. Id. at ¶¶15-16. Transou was

one of three candidates who applied for and interviewed for the assistant general manager position despite never having previously been marked “ready” in any of her performance reviews. Id. at ¶¶ 18, 29. At the time she applied, Transou had an associate degree and had worked at Costco for more than 20 years. Interviews were conducted by a panel of three individuals: the general manger Cimino who worked at the same store as Transou, and two other individuals (Dan Lavigne and Lynda Calocci) who were general managers at other warehouses in the Chicagoland area. Id. at ¶ 19. All three general managers were white, two were men, and their ages ranged from 55 to 75. Id. at ¶ 20.

After the interviews were completed in October 2023, Farooq Shariff, a 34-year old male was selected for the assistant general manager. Id. at ¶ 22. Shariff had worked at Costco since 2014 (or for approximately 9 years compared to Transou’s 21 years), and he had obtained a bachelor degree and two professional certifications while working part time. Id. at ¶ 23. He had been marked “ready” for promotion at the time of the interviews. Furthermore, in interview notes, Transou was noted to

have not provided specific answers to certain questions posed to her, including her contributions to the warehouse. Shariff was viewed more favorably and more prepared in his interview, including specific contributions to the warehouse, including improving the standing of the warehouse’s optical department (where Shariff had worked as department manager) and participating in payroll, audits, budgets and hiring as an administrative manager. Id. at ¶¶ 23-25. Three months later, in February 2024, Transou remained a Costco employee

and assisted with the hiring of a “sales auditor” position. Id. at ¶ 37. As part of the interview process for that position, two candidates were required to take an assessment test which Transou oversaw. Id. One of the applicants, Jennifer Estrada took the 30-minute assessment test when she had only 26 minutes left on her shift. During the test, Estrada informed Transou that her shift was ending and she needed to clock out. Transou had Estrada finish taking the test while Transou used Estrada’s badge to clock her out—resulting in Estrada completing the test “off the clock” for approximately 4 minutes. Id. at ¶ 40. Estrada, who was not selected for the sales auditor position, later complained to management about Transou clocking her out

and an investigation ensued. Id. at ¶ 41. As part of the investigation by general manager Cimino, Transou confirmed that she had clocked Estrada out but stated she did it in the presence of Estrada and as a favor for her while completed the test. Id. at ¶¶ 42-43. And while clocking out another employee is grounds for termination under Costco policy, Transou instead received a “counseling notice” and suspension. Id. at ¶¶ 46-48. On March 8, Cimino requested approval to demote Transou to an

hourly cashier position. Id. at ¶ 49. On March 11, the demotion was approved, and on March 20, Transou was notified of her demotion. That timeline of events coincided with Transou filing her first charge of discrimination with the Equal Employment Opportunity Commission (EEOC). Specifically, on March 11, the same day that Cimino received approval to demote her, Transou filed her charge of age discrimination relating to Costco’s failure to select her for the assistant general manager position. Id. at ¶ 52. Costco was made aware

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