Colorado case against Kroger and Albertsons merger begins

A third lawsuit challenging the proposed Kroger-Albertsons merger began Monday in U.S. District Court in Denver, but the case is distinct from separate lawsuits filed by Federal Trade Commission and Washington attorney general, seeking civil penalties of $1 million each from both grocers.

Similar to FTC and Washington, D.C., a lawsuit filed in February by Colorado Attorney General Phil Weiser argues that the proposal get rid of 579 C&S Wholesale Grocers stores is “inappropriate” and the merger will harm consumers and workers.

In the lawsuit, Weiser further accuses both grocers of violating Colorado antitrust law by agreeing not to poach employees or solicit pharmacy customers during the 2022 employee strike at Kroger-owned King Soopers.

“In addition to challenging this merger, we are also suing both companies for a no-poaching agreement that harms employees and flagrantly violates antitrust law,” Weiser said in February. “No-poaching agreements stifle labor mobility and depress wages, and no-solicitation agreements harm consumers and raise prices.”

Kroger and Albertsons denied the accusations, releasing: joint statement in February, which calls the alleged agreement a “mischaracterization of the facts.”

“Employees from both companies regularly join our teams – and leave our companies to work – at Albertsons, Kroger, Walmart, Amazon, Costco and other retailers, as well as restaurants, food service companies, convenience stores, warehouses and more ”the two retailers said in February.

On September 26, Weiser’s office released a statement arguing that the merger would negatively impact approximately 6,100 Coloradans and be bad for “shoppers, workers, suppliers and farmers.”

“Nearly two years since the companies announced their merger, we finally have a chance to prove in court why this transaction would be bad for Colorado and the country,” Weiser announced in a recent news release.

The two-week Colorado case was originally scheduled to begin Aug. 12, but Judge Andrew J. Luxen, who will oversee the trial, approved preliminary injunction in July, which postponed the matter to the end of September.

Union workers in Colorado represented by United Food and Commercial Workers Local 7, UFCW Local 1564, Teamsters Local 455 and the Rocky Mountain Farmers Union held a rally outside the courthouse on Monday.

“UFCW Local 7 and supporters speak out against merger because it could lead to job losses; food and pharmacy deserts; negative economic impacts on the supply chain, including farmers, ranchers and transportation; and fewer employee rights at the bargaining table,” the union said in a press release.

The cases brought by the FTC and Washington are pending, but a decision in a federal case it may come as early as this week. In Portland, Oregon, Judge Adrienne Nelson gave all sides until September 27 to submit final written arguments.