Albertsons granted expedited view of temporary restraining order
Following several weeks of legal challenges, Albertsons has been granted a Jan. 17 review of the temporary restraining order against its previously announced $6.85-per-common-share special dividend. At that time, the Washington Supreme Court, sitting en banc, will review the appeal of the attorney general of the State of Washington, which was originally scheduled for Feb. 9.
The temporary restraining order will remain in effect until there is a further order issued by the Washington Supreme Court.
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On Dec. 20, the U.S. Circuit Court for the District of Columbia denied the motion filed by the California, Illinois and District of Columbia attorneys general for an injunction pending appeal and an administrative stay of the payment of the special dividend. On Nov. 8, the U.S. District Court for the District of Columbia denied the request by the California, Illinois and District of Columbia attorneys general for a temporary restraining order against the payment of the special dividend.
Albertsons maintains that the claim brought by the attorney general of the State of Washington, as well as 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 the special dividend. Albertsons’ position has been supported by favorable rulings in both circuit and district courts in the District of Columbia, and a Washington state court.
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Albertsons’ proposed merger with Kroger is continuing through the required regulatory review, which includes obtaining clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
This story originally appeared on Progressive Grocer.