Updates March 6 story to correct Kroger's response to Albertsons' claims in para 8

By Mike Scarcella

March 6 (Reuters) - California, Oregon, Illinois and five other U.S. states have asked a U.S. judge to award them legal fees for winning an order in federal court blocking Kroger’s now-abandoned $25 billion deal for grocery rival Albertsons.

The states and the District of Columbia said in a court filing in Oregon on Wednesday that they are entitled to fees for their legal work under federal antitrust law. A judge in December blocked the deal, and Kroger then dropped the merger.

U.S. District Judge Adrienne Nelson will weigh the fee request. The states did not ask for a specific amount, but the total could reach millions of dollars.

The dispute could test the scope of a new U.S. Supreme Court ruling that addresses the payment of fees in some cases to the prevailing party. The justices' ruling set a higher bar in some instances for plaintiffs to recover fees.

Kroger, Albertsons and representatives for California, Oregon and Illinois did not immediately respond to requests for comment on Thursday.

The states joined the Federal Trade Commission in a lawsuit filed in federal court in Oregon in February 2024.

The Kroger-Albertsons deal would have marked the largest supermarket merger in U.S. history.

The companies had defended the deal as beneficial to consumers and workers. Albertsons has since sued Kroger, alleging its termination of the deal was a breach of contract. Kroger has denied the claims by Albertsons.

In their fee bid, the states said they “substantially” prevailed after winning an order against the merger that scuttled the deal.

The states urged Nelson not to apply the recent U.S. Supreme Court ruling to their fee request, saying the justices' decision applied to civil rights litigation and not antitrust matters.

The case is Federal Trade Commission et al v. The Kroger Co and Albertsons Companies, U.S. District Court for the District of Oregon, No. 3:24-cv-00347-AN.

Read more:

Albertsons demands billions from rival Kroger after terminating merger bid

Kroger's $25-billion deal for grocery rival Albertsons blocked by US courts

Washington state paying law firm Munger to fight Kroger-Albertsons merger

Kroger-Albertsons merger fight features antitrust law veterans, new federal judge

(Reporting by Mike Scarcella)

((Mike.Scarcella@thomsonreuters.com;))