Trade Court Grants Class Action Status in Key Challenge Seeking IEEPA Tariff Refunds - Sobel Network Shipping Co., Inc.

Trade Court Grants Class Action Status in Key Challenge Seeking IEEPA Tariff Refunds

A federal trade judge has cleared the way for importers to collectively seek duty refunds tied to the International Emergency Economic Powers Act (IEEPA). In an October 8 decision, Judge Richard Eaton of the U.S. Court of International Trade certified a class under Rule 23(b)(2) in the lead dispute, naming attorneys from Barnes, Richardson & Colburn and Lieff Cabraser Heimann & Bernstein as class counsel.

The certified class covers all importers of record who paid duties under the contested tariff orders from February 1, 2025, through February 19, 2026, provided they have not already filed independent actions to recover those IEEPA payments.

Plaintiff Freestyle World initially sought certification in June. Judge Eaton’s ruling followed two separate oral arguments on the issue—one in Freestyle World and another in V.O.S. Selections.

In granting the motion, Judge Eaton turned aside federal prosecutors’ procedural and substantive challenges:

  • Timeliness: The court dismissed the government’s claim that Freestyle World acted too late, finding the request appropriately timed and that the proposed injunctive remedy would deliver comprehensive, class-wide relief.

  • Incidental Monetary Relief: The government contended that Rule 23(b)(2) bars certification because the litigation seeks non-incidental monetary damages. Judge Eaton disagreed, ruling that any refund calculations would qualify as incidental because duties would be determined mechanically by a computer.