Arizona Attorney General Kris Mayes wants more than $972,000 from two grocery giants whose 2024 merger her office played a role in blocking.
Legal papers filed in federal court in Oregon say that's what Arizona spent in legal fees and costs fighting the proposed bid by Kroger — the parent company of Fry's Foods, Smith's, and other grocery stores — to obtain the Albertsons chain, including Safeway, which Albertsons previously acquired.
It's not just Mayes seeking reimbursement.
Several other states involved in the lawsuit led by the Federal Trade Commission also want some money. All totaled, their requests total more than $10.3 million.
Attorneys for the affected states are telling a federal judge that the amount is justifiable, citing a filing by Kroger with the Securities and Exchange Commission that it spent more than $1 billion over three years in the unsuccessful merger.
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"Thus, even when factoring in the FTC's role in the proceedings, the states' request in this case is reasonable,'' the states' attorneys told U.S. District Court Judge Adrienne Nelson.Â
There was no immediate response from either company.
Mayes got involved in 2023 when the proposed merger was announced.
Kroger said the merger would benefit not just shareholders but would lower prices, provide more choices and establish a more competitive alternative to "large, non-union retailers,'' a reference to Walmart — though not all Kroger stores are unionized, either.
It also promised to invest $1.3 billion into Albertsons.
Mayes and other attorneys general started an investigation, which cost money, the lawsuit says. There was a database shared by the states to deal with the more than 19 million documents gathered.
"States also issued their own investigative demands, interviewed witnesses in the industry, attended FTC investigative hearings, spoke to consumers and grocers, and conducted market research," the lawyers told Nelson.
In 2024, the FTC sued, with Arizona and other states joining in and incurring more costs, the state officials said.
Ultimately, federal and state judges issued an order enjoining the $24.6 billion merger. The chains ultimately gave up and remain separate.
None of that, the state attorneys general say, excuses the two chains from reimbursing them for all of their legal fees and costs investigating, separate from the FTC, which state laws could be violated with a merger.
"Each of the states spent a significant amount of time investigating and prosecuting their opposition to the proposed merger,'' they told the judge. "The hours for both investigating and prosecuting the states' antitrust claims for injunctive relief are recoverable.''
Mayes said at the time that her office was reviewing things like whether the combination would enable the surviving entity to drive up prices in Arizona, whether stores would close, and how it would affect the 35,000 Arizonans working for both companies. She held a series of town halls across the state to hear from residents on how the merger would affect them and their communities.Â
The attorneys pursuing the legal fees estimated in the court documents that the eight states and the District of Columbia, separate from the FTC, spent a total of about 15,000 hours involving 45 attorneys, 16 paralegals and other support staff.
They said the $774 an hour they want for lawyers is reasonable.
"The proposed merger between Albertsons and Kroger represented a significant threat to the competitive market for grocery stores that is fundamental to maintaining lower costs for food,'' lawyers for the states told the judge.
"Defendants were willing to spend $1.5 billion to see the merger through,'' they said. "The states' request for attorneys' fees and expenses is reasonable in light of the complexity of the issues, the significant impact they had, and the resources required to succeed.''
The bid for legal fees is separate from a legal action filed by the state of Washington in state court to block the merger, in which Washington was awarded $28.4 million.
Howard Fischer is a veteran journalist who has been reporting since 1970 and covering state politics and the Legislature since 1982. Follow him on X,  and Threads at @azcapmedia or email azcapmedia@gmail.com.

