A King County Superior Court judge on Thursday granted Attorney General Bob Ferguson’s motion for a temporary restraining order to block Albertsons’ $4 billion dividend payment to shareholders.
Ferguson’s lawsuit was the first one filed this week, before the attorneys general of California, Illinois and the District of Columbia also sued Albertsons to stop the payment.
“Huge victory! Putting the brakes on this $4 billion payment is the right thing for Americans shopping at their local grocery store,” Ferguson said in a statement. “Thanks to my team for their usual excellent job holding powerful interests accountable.”
Ferguson filed the lawsuit Tuesday in an effort to stop Albertsons from making the payout before its proposed merger with Kroger could be reviewed by antitrust enforcers on the state and federal level.
Albertsons had planned to pay out the dividends on Nov. 7. The company revealed that it plans to pay for the dividend with $2.5 billion in cash on hand, with plans to borrow the remaining $1.5 billion.
The temporary restraining order granted by the judge on Thursday means Albertsons cannot make the payments while Ferguson’s lawsuit is ongoing.
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