A coalition of states led by California is requesting $10.3 million in legal fees and expenses after successfully preventing the proposed merger between grocery giants Kroger and Albertsons.
California would receive $5.1 million of the total amount as the state increasingly takes on major antitrust cases independently of federal regulators. U.S. District Judge Adrienne Nelson in Portland, Oregon, has already determined that the states deserve compensation for their legal costs but hasn’t yet decided on the specific dollar amount.
The Golden State is spearheading several other antitrust battles, including a bipartisan push to stop Nexstar’s $3.54 billion purchase of Tegna after federal authorities chose not to intervene. California and eight other states, plus the District of Columbia, are also continuing their lawsuit against Live Nation even after the Department of Justice reached a settlement during the trial.
Additionally, California is examining Paramount Skydance’s proposed $110 billion deal to acquire Warner Bros Discovery, which federal regulators are also investigating.
The fee request demonstrates the significant financial burden states face when challenging corporate mergers. According to court documents filed in Oregon federal court, the states spent less money by collaborating with the U.S. Federal Trade Commission on the case.
The FTC and state coalition achieved victory in 2024 when Judge Nelson issued a ruling that stopped the $25 billion transaction, which states argued would have created the biggest supermarket merger in American history.
Washington state pursued its own separate legal challenge, resulting in an additional state court order preventing the merger. Washington was ultimately granted $28.4 million in legal fees and costs.
However, well-funded corporations invest heavily in defending their proposed deals. Kroger and Albertsons combined reported spending $1.5 billion on merger-related expenses. A portion of those costs went toward employing over 60 defense lawyers from eight different law firms, with some attorneys charging more than $1,625 per hour, according to state filings.
Representatives for both Kroger and Albertsons have not yet responded to requests for comment on the fee request.
