Albertsons $4B shareholder payout on hold – for now

A King County Superior Court has temporarily blocked Albertsons from making cash dividend payments to shareholders. The payout is part of a potential merger between two supermarket giants, Albertsons and Kroger.

Earlier this week, Washington Attorney General Bob Ferguson sued Albertsons to block a $4 billion payout that was planned for Nov. 7.

The lawsuit followed a bipartisan letter by Ferguson and five attorneys general urging Albertsons to delay the payment until the merger is approved. Albertsons declined.

Since then, California, Illinois, and the District of Columbia have filed a lawsuit in federal court in Washington, D.C.

The attorneys general expressed concern it could weaken the company’s ability to operate stores and compete while the merger is still under review.

Albertsons dismissed those claims as meritless, saying it is confident it will remain financially strong as it works toward finalizing the merger.

In Washington, a King County Superior Court granted the temporary restraining order until next week, when the Attorney General’s Office will ask the court to put the payment on hold until the merger is resolved.