Washington issues restraining order against Albertsons

The King County Superior Court in Washington state granted attorney general Robert Ferguson’s motion for a temporary restraining order on Nov. 3 barring the $4 billion special dividend that Albertsons intended to pay on Monday, Nov. 7. The order stated: “A temporary retraining order against Albertsons is necessary to maintain the status quo until the Court can hear the state’s motion for preliminary injunction, which has been set for hearing on Nov. 10 at 3 p.m.”

“Huge victory!” Ferguson said in a statement issued late in the afternoon on Nov. 3. “Putting the brakes on this $4 billion payment is the right thing for Americans shopping at their local grocery store. Thanks to my team for their usual excellent job holding powerful interests accountable.”

Ferguson partnered with a bipartisan group of six attorneys general from around the country on Oct. 26 and wrote Albertsons to urge the grocery retailer to delay paying the special dividends until the states complete their review of the proposed merger. In the letter, the attorney generals cite that the $4 billion payout represents about a third of Albertsons’ total stock value. In its response, Albertsons declined to delay paying the special dividend. As a consequence of Albertson’s refusal, Ferguson filed a motion for a preliminary injunction on Nov. 1.

Albertsons responded: “Albertsons Cos. intends to seek to overturn the restraint as quickly as possible because the temporary order was based on the incorrect assertion that payment of the special dividend would impair its ability to compete while its proposed merger (the ‘merger’) with The Kroger Co. (“Kroger”) is under antitrust review.”

A hearing on the state of Washington’s request for a preliminary injunction is scheduled for Nov. 10.

— Editor’s note: This article was updated Nov. 4, 2022 with a statement from Albertsons.