Albertsons’ $4 Billion Dividend Payout Blocked by Washington Court

Last week, Washington’s King County court granted a nationwide temporary restraining order on Albertsons’ $4 billion payout to investors.

This is a wrench in Kroger’s plans to buy Albertsons for $25 billion, which was announced weeks ago. Albertsons’ $4 billion dividend payout to shareholders was part of the deal. 

According to Fox Business, State Attorney General, Bob Ferguson, filed the lawsuit to prevent Albertsons’ from paying shareholders. The attorneys general of Washington D.C., California and Illinois also filed a lawsuit against Albertsons for the same reason. 

“They alleged the proposed dividend was in violation of federal and state antitrust laws by rendering Albertsons less able to compete effectively with other supermarkets. They also raised concerns that it would make the retailer strapped for cash after the payout,” Fox Business reported. 

Albertsons announced the payout would be funded by $2.5 billion in cash and the rest would be borrowed.