Food Policy

    Nine States Seek $10.3 Million From Kroger After Blocking the Largest Grocery Merger in U.S. History

    Oregon is leading a nine-state coalition seeking $10.3 million from Kroger in legal fees after successfully blocking the $24.6 billion Kroger-Albertsons grocery merger

    By Aaron Rafferty·WYDE Newsroom· 3 min read
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    Nine States Seek $10.3 Million From Kroger After Blocking the Largest Grocery Merger in U.S. History

    Key Takeaways:

    • Oregon Attorney General Dan Rayfield is leading a nine-state coalition seeking $10.3 million in legal fees from Kroger after successfully blocking the $24.6 billion Kroger-Albertsons merger in December 2024.

    • Oregon's share is $2.25 million, including $1.8 million in attorney fees and $445,000 in expenses, following a February 27, 2026 court ruling confirming the states prevailed and are entitled to cost recovery.

    • The fee petition sets a precedent for state-level antitrust enforcement accountability, with Rayfield stating: "When federal enforcers step back, states step up."

    Oregon Attorney General Dan Rayfield announced that the state is seeking more than $2.25 million from Kroger in attorney fees and legal costs after helping block the $24.6 billion Kroger-Albertsons merger. Oregon is leading eight other states in a combined fee petition totaling $10.3 million.

    The petition follows a February 27, 2026 court ruling that confirmed the plaintiff states prevailed in the landmark antitrust case. Once a final order is issued on the amounts, Kroger is obligated to pay. Oregon taxpayers cover nothing.

    The merger, announced in October 2022, would have combined two of the largest grocery chains in the United States with roughly 5,000 stores. In December 2024, a federal judge in Oregon and a Washington state court issued parallel preliminary injunctions halting the deal. Courts found the merger would likely raise grocery and pharmacy prices, reduce worker bargaining power, and eliminate head-to-head competition in hundreds of communities.

    "When federal enforcers step back, states step up," Rayfield said. "Recovering attorneys' fees is one way Oregon can sustain that work, making it clear to corporations that when they push deals that harm consumers, they will be held accountable."

    The aftermath has been messy. Kroger and Albertsons terminated the merger agreement after the rulings and then sued each other for breach of contract. Kroger's CEO resigned after an internal ethics investigation.

    The fee recovery sets a template. States that successfully block anticompetitive mergers can recoup their costs from the companies that tried to push them through. That changes the calculus for future consolidation attempts in grocery, food distribution, and adjacent sectors where consumer prices and food access are directly at stake.

    The same week, Sysco announced a $29.1 billion acquisition of Restaurant Depot, the largest deal in food distribution history. Upstream consolidation is accelerating while downstream consolidation is getting blocked. The food infrastructure landscape is being reshaped from both directions simultaneously.

    People Also Ask

    Q: How much does Kroger owe in legal fees from the Albertsons merger block? A: Nine states are seeking a combined $10.3 million from Kroger in attorney fees and costs. Oregon's share is $2.25 million. The amounts are pending final court order.

    Q: Why was the Kroger-Albertsons merger blocked? A: Courts found the $24.6 billion merger would likely raise grocery and pharmacy prices, reduce worker bargaining power, and eliminate head-to-head competition in hundreds of communities across the United States.

    Q: Can states recover legal fees from blocked mergers? A: Yes. A February 2026 ruling confirmed that states that prevailed in the Kroger-Albertsons antitrust case are entitled to recover attorney fees and litigation costs from the merging parties.

    Sources:

    food policylegal
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