Kroger (KR) Settles Lawsuit with C&S Wholesale Grocers

The Kroger Co. (NYSE:KR) is one of the best long-term stocks to invest in according to Warren Buffett. On August 11, Kroger and C&S Wholesale Grocers reached a confidential settlement, resolving a lawsuit that C&S had filed against Kroger. The lawsuit stemmed from the collapse of Kroger’s proposed $24.6 billion merger with Albertsons. To gain regulatory approval for that merger, Kroger and Albertsons had agreed to sell hundreds of stores and other assets to C&S Wholesale Grocers.

C&S sued Kroger in March, alleging that it was owed a $125 million termination fee. The lawsuit argued that Kroger’s inability to finalize the merger prevented C&S from acquiring nearly 600 supermarkets, private-label brands, and other assets, which were part of the divestiture plan. However, Kroger responded that C&S was not entitled to the termination fee. In a separate legal battle, Kroger had also filed a lawsuit against Albertsons, claiming that Albertsons and C&S had “secretly coordinated” and undermined the merger deal.

A joint court filing in the Delaware Superior Court confirmed that all claims have been resolved. The case was dismissed with prejudice, which means C&S is barred from bringing the same claims against Kroger in the same court.

The Kroger Co. (NYSE:KR) is one of the largest grocery retailers in the United States. It operates over 2,700 supermarkets and multi-department stores under various banners, including Kroger, Ralphs, and Harris Teeter. The company also manufactures and processes food for sale in its supermarkets and offers pharmacy, fuel, and financial services.

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Disclosure: None. This article is originally published at Insider Monkey.