The LA Times reports that Costco has settled a lawsuit brought by Cao Yong, "a Chinese immigrant painter of popular romantic cityscapes," alleging that it was selling phony prints of his work and providing fake certificates "signed and numbered by the artist." Terms of the settlement were not disclosed. According to the artist's lawyer, between seven and 15 prints were sold. It seems the suit was brought just a couple of weeks ago.
You can see samples of Cao's work here. Sergio Muñoz Sarmiento is not impressed.
This isn't Costco's first Art Law Blog appearance. See here.