Albertsons Companies Provides Update on Legal Proceedings in State of Washington Surrounding Special Dividend

Rhea-AI Summary

Albertsons Companies, Inc. (NYSE: ACI) announced that the Washington State Supreme Court has expedited the review of a temporary restraining order against its $6.85 per common share Special Dividend. The review date is now January 17, 2023, moved from February 9, 2023. The company asserts that the lawsuits challenging the dividend from various state Attorneys General lack merit, supported by previous court rulings. Meanwhile, the proposed merger with Kroger remains under regulatory review.

Positive

• The expedited court review could lead to quicker resolution regarding the Special Dividend.
• Albertsons maintains strong legal backing for the Special Dividend against claims.

Negative

• Ongoing legal challenges could delay the Special Dividend payment.
• Regulatory scrutiny related to the merger with Kroger may affect operational focus.

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies, Inc. (NYSE: ACI) (“Albertsons Cos.” or “the Company”) announced that the State of Washington Supreme Court has granted the Company’s motion to hold an expedited review of the temporary restraining order (“TRO”) against the Company’s previously announced $6.85 per common share Special Dividend (the “Special Dividend”). The date for the review has been moved forward to January 17, 2023, having previously been set for February 9, 2023.

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. Albertsons’ position has been supported by favorable rulings in both Circuit and District courts in the District of Columbia and a Washington State court.

Albertsons Cos.’ proposed merger with The Kroger Co. is continuing through required regulatory review, including seeking clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about the Special Dividend and the payment thereof. They include statements which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as “outlook,” “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements.

These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In evaluating our forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the “Risk Factors” section or other sections in our reports filed with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230102005027/en/

For Investor Relations, contact investor-relations@albertsons.com

For Media Relations, contact media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

What is the latest update on Albertsons' Special Dividend (NYSE: ACI)?

The Washington State Supreme Court has expedited its review of the restraining order against the Special Dividend, now set for January 17, 2023.

What is the amount of Albertsons' Special Dividend?

Albertsons has announced a Special Dividend of $6.85 per common share.

When is the court review regarding the Special Dividend?

The court review for the Special Dividend is scheduled for January 17, 2023.

What lawsuits is Albertsons facing regarding its Special Dividend?

Albertsons is facing lawsuits from the Attorneys General of Washington, California, Illinois, and the District of Columbia challenging the Special Dividend.

How does the merger with Kroger impact Albertsons (NYSE: ACI)?

The merger is undergoing regulatory review, which may influence Albertsons' operational focus and financial strategy.