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California Seeks Millions in Legal Costs After Blocking Kroger-Albertsons Deal

By  |  April 1, 2026
Kroger and Albertsons apps on phone

California and a coalition of states are asking a federal judge to award $10.3 million in legal fees and costs tied to their successful effort to block the proposed merger between Kroger and Albertsons, according to Reuters. The request underscores the growing role states are playing in antitrust enforcement, particularly as they take on cases sometimes without federal backing.

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    Of the total amount requested, California is seeking to recover $5.1 million, per Reuters. The move comes as the state increasingly leads complex antitrust actions, stepping in where federal regulators have chosen not to intervene. A ruling by U.S. District Judge Adrienne Nelson has already established that the states are entitled to recover fees, though the final amount has yet to be determined.

    The legal push reflects a broader trend of state-led enforcement. California is currently spearheading a bipartisan effort to block a $3.54 billion acquisition by Nexstar Media Group of Tegna, even after the U.S. Department of Justice declined to challenge the deal, according to Reuters. Similarly, a coalition that includes the District of Columbia and several states is continuing litigation against Live Nation Entertainment following a mid-trial settlement by federal authorities.

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    Related: Albertsons Sues Kroger After Courts Block $24.6 Billion Merger

    California is also investigating a proposed $110 billion merger involving Paramount Global and Skydance Media with Warner Bros. Discovery, a deal that is also under review by federal regulators, per Reuters.

    The states’ fee request highlights the significant financial burden associated with challenging large corporate mergers. According to Reuters, states were able to reduce costs when working alongside the U.S. Federal Trade Commission during the Kroger-Albertsons case. That joint effort ultimately succeeded in 2024 when Judge Nelson ruled to block the $25 billion transaction, which would have created the largest supermarket merger in U.S. history.

    Separate legal action by Washington state also contributed to halting the deal, resulting in a state court order and a $28.4 million award in legal fees and expenses, according to Reuters.

    The filings further illustrate the scale of resources deployed by corporations defending such mergers. Kroger and Albertsons reportedly spent a combined $1.5 billion on merger-related costs, per Reuters. That total included hiring more than 60 defense attorneys across eight law firms, with some billing rates exceeding $1,625 per hour.

    Source: Reuters