Albertsons: WA Supreme Court Accelerates Dividend Review Schedule

The Washington State Supreme Court has accelerated the review process of a temporary block on grocery chain Albertsons’ $4 billion shareholder dividend.

The expedited review, moved up to January 17 from its original date in February, aims to resolve questions over the payment, which has been a flashpoint for controversy since the $26 billion grocery mega-merger was announced in September.

The issue has been volleying between courts since November when a group of state attorneys general, including Washington State’s Bob Ferguson, filed separate lawsuits to block the merger. A temporary restraining order (TRO) was placed on the payment in Washington on November 3 and later extended to mid-December; in the interim, a trial court judge in Seattle denied Ferguson’s request to place a preliminary injunction on the payment until the merger had undergone the full antitrust review process.

In response, Ferguson asked the State Supreme Court for emergency injunctive relief. Despite citing no evidentiary support for the state’s request, the court ruled to continue blocking the shareholder payout to give appellate courts enough time to analyze the trial court’s decision.

“Albertsons Cos. continues to maintain 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, are meritless and provide no legal basis for preventing the payment of the Special Dividend,” the grocery chain said in a statement on its website. “Albertsons’ position has been supported by favorable rulings in both Circuit and District courts in the District of Columbia and a Washington State court.”