Albertsons Companies announced Friday that the Washington State Court has denied the request for a preliminary injunction by the Attorney General of the State of Washington against the previously announced $6.85 per common share Special Dividend originally scheduled to be paid on November 7, 2022, to stockholders. The court has extended the existing temporary restraining order that has blocked the payment, until 4:30 p.m. PST on December 19, 2022, to give the Attorney General of the State of Washington Bob Ferfuson, an opportunity to appeal the ruling.
Ferguson filed a lawsuit on November 1 to block Albertsons Companies from a $4 billion payout to shareholders before a proposed merger with The Kroger Co. could be reviewed by state and federal antitrust enforcers.
The payment, Ferguson argued, risked severely undercutting the grocery giant’s ability to compete during the time period government regulators will be scrutinizing the merger.
A King County Superior Court in Washington state granted Ferguson’s motion for a nationwide temporary restraining order that blocked the payment from happening on Nov. 7.
Albertsons sought to overturn the restraining order contending that it was based on the incorrect assertion that payment of the special dividend would impair its ability to compete while its proposed merger with The Kroger Co. is under antitrust review, according to Albertsons.
The retailer is waiting for a ruling on the request for a preliminary injunction filed December 1 by the California, Illinois, and District of Columbia Attorneys General against the payment.
Albertsons said in a statement that it continues to believe that the claim brought by the Attorney General of the State of Washington, and the similar lawsuit brought by the Attorneys General of California, Illinois, and the District of Columbia, is meritless and provides no legal basis for preventing the payment of a dividend that has been duly and unanimously approved by Albertsons Cos.’ fully informed Board of Directors.
Related: Washington Sues to Block Albertsons Payout; Kroger, Albertsons CEOs Face Congressional Questioning.