California, joined by a group of states, has asked a federal court to award $10.3 million in legal fees and expenses for its role in blocking the proposed Kroger-Albertsons merger. According to the filing, California would be due $5.1 million of the requested amount as the state steps forward in antitrust matters that often proceed without direct assistance from federal enforcers.
U.S. District Judge Adrienne Nelson in Portland, Oregon, previously found that the states were entitled to recover fees and costs, but she has not yet determined the specific dollar amount to be awarded. The request from California and the other states reflects both the litigation costs these governments incur and the growing prominence of state-led antitrust efforts.
The filings note that states can incur lower expenses when they collaborate with the U.S. Federal Trade Commission. In the Kroger-Albertsons litigation, the FTC and the states prevailed in 2024 when Judge Nelson ordered the $25 billion transaction blocked. Separately, the state of Washington mounted its own challenge in state court, which resulted in a court order that also enjoined the deal. That state was later awarded $28.4 million in fees and expenses.
The legal push by states is part of a broader pattern of state-led antitrust activity. California is leading a bipartisan challenge to Nexstar’s $3.54 billion acquisition of Tegna after the U.S. Department of Justice declined to pursue the matter. The District of Columbia and eight states are continuing a case against Live Nation after the DOJ reached a mid-trial settlement.
California is also conducting an inquiry into Paramount Skydance’s proposed $110 billion acquisition of Warner Bros Discovery, a matter that the DOJ is investigating as well. Those parallel probes illustrate the overlapping roles federal and state authorities can play in evaluating large transactions.
The fee request highlights the significant cost of mounting merger challenges. The states noted that Kroger and Albertsons together reported approximately $1.5 billion in merger-related expenditures. An unspecified portion of that total went toward hiring more than 60 defense attorneys across eight law firms, with some lawyers billing at rates above $1,625 per hour, according to the state filings.
Spokespeople for Kroger and Albertsons did not immediately respond to requests for comment on the fee petition.
Context and implications
The petition for $10.3 million underscores the resource intensity of high-stakes antitrust litigation and the willingness of states to pursue significant remedies independently or in concert with federal agencies. The outcome of the fee determination will reflect judicial assessment of the states' contributions to the successful challenge.