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Albertsons (NYSE:ACI) $4 billion special dividend payment remains halted as a Washington state Supreme Court has set a February date for an appeal hearing on dividend in connection to the supermarket chain’s planned sale to Kroger (NYSE:KR). Albertsons rose 1.2%.
The Washington State Supreme Court set Feb. 9 for an en banc hearing on the state attorney general’s appeal of a ruling that allowed the dividend to go forward, according to a statement from Albertsons.
The temporary restraining order on the dividend will remain in effect until there is a further order issued by the Washington Supreme Court. Albertsons filed a motion to further expedite the Washington Supreme Court’s en banc review.
Earlier this month A Washington state judge denied a preliminary injunction that prevents Albertsons from paying a $4 billion, though the dividend remains blocked while the case is appealed to the Washington state Supreme Court.
A different Washington state judge granted a temporary restraining last month that blocked payment of Albertsons (ACI) $6.85/share special dividend that was supposed to be paid on Nov. 7. The suit in Washington accused the two companies of violating antitrust and consumer protection laws.
A judge in Washington, D.C. last month also ruled that Albertsons (ACI) can proceed with paying the special dividend. US District Judge Carl Nichols denied the request made by attorneys general in California, Illinois, and Washington, D.C. to block the dividend temporarily.
Albertsons (ACI) also said that on Tuesday that he U.S. Circuit Court for the District of Columbia denied the motion filed the California, Illinois and District of Columbia Attorneys General for an injunction pending appeal and an administrative stay of the payment of the special dividend.
Albertsons (ACI) reiterated in its statement that it continues to maintain that claims brough by Washington state and other states are “meritless and provide no legal basis for preventing the payment of the special dividend.”
Earlier this month Kroger (KR) received a request from the Federal Trade Commission for additional information in regard to its planned $24.6 billion purchase of rival supermarket chain Albertsons.