Yes, that's going to happen. The books are in the US public domain and anyone in the US can do anything they want with them, including reselling them. Obviously we are not the ones selling these.
In any case almost nobody is buying these anyway, as there are so many other free ebook editions of just about all of these books already.
I'm surprised Kobo doesn't have a list of banned seller names for situations like this. It would take zero effort on their end, and they're clearly opening themselves to liability.
Off to create Amazon and Disney stores over there... /s