State attorneys general sue to block Albertsons’ $4B payout

By DEE-ANN DURBIN
AP Business Writer

The attorneys general of California, Illinois and the District of Columbia are suing Albertsons to stop the grocery chain from paying nearly $4 billion to its shareholders. The lawsuit filed Wednesday in U.S. District Court in Washington asks the court to block the payment until the attorneys general have reviewed Albertsons’ proposed merger with Kroger Co. Washington’s attorney general filed a similar lawsuit in state court Tuesday. Kroger announced its plan to buy Albertsons for $20 billion last month. The merger agreement included a special dividend of up to $4 billion that Albertsons is scheduled to pay shareholders on Monday. Albertsons says the lawsuits are without merit.