In order to resolve the failed $24.6 billion takeover that is currently the subject of litigation between the two firms, Albertsons Cos. required that Kroger Co. furnish information regarding personal behavior that caused the company to fire its CEO.
Kroger did not provide further details when it revealed earlier this year that Rodney McMullen had abruptly resigned following a board probe into his actions that violated the company’s business ethics standard.
Since McMullen micromanaged the transaction from start to finish and his business ethics—or lack thereof—are at the center of this case, Albertsons’ lawyers stated in a court filing on Sunday that they must know what transpired.
The demand is part of a lawsuit in Delaware Chancery Court in which the biggest grocery chains in the US are suing one another over a failed merger attempt by Kroger that was denied due to antitrust concerns. Because it claimed that Kroger had not used its best efforts to obtain regulatory permission, Albertsons was the first to file a lawsuit, requesting billions of dollars in damages. Kroger retaliated, accusing Albertsons of sabotaging the agreement and attempting to use fictitious claims to obtain a $600 million termination fee.
Two years ago, the biggest grocery chain in the US, Kroger, planned to buy Albertsons, the number two grocery store. However, for antitrust considerations, the US Federal Trade Commission filed a lawsuit to halt the transaction. In December, a federal judge rejected the arrangement, and Albertsons was the first to revoke it as a result.
Regarding the company’s filing, Albertsons chose not to comment.
An email asking for comment was not immediately answered by McMullen.
Albertsons contended in its court filing on Sunday that since McMullen will be a crucial witness for Kroger, it was imperative to obtain information about him. Attorneys for Albertsons argued that his actions raise serious questions about his attention during the merger process and his capacity to carry out Kroger’s contractual commitments to Albertsons, in addition to his credibility, honesty, and legal compliance.
According to a Kroger representative, Albertsons’ desperation is once again evident in this most recent attempt to divert attention from its own wrongdoing during the regulatory process, even as the firm continues to concentrate on providing exceptional value to its customers and communities.
When Kroger announced McMullen’s departure following an investigation in March, it gave few specifics. The corporation said at the time that his actions had nothing to do with the workers or financial success of the business.
In its submission, Albertsons contended that it cannot believe Kroger when it says that McMullen’s actions had nothing to do with the merger or any of the litigation’s issues.
Attorneys for Albertsons argued that Kroger has not provided an explanation for why the board deemed McMullen unable to serve as CEO and fired him within ten days of the incident.
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“Without knowing the details, there’s no way for Albertsons to know if Kroger’s CEO engaged in wrongdoing, such as failing to engage in his best efforts to navigate regulatory approval for the merger,” said Jill Fisch, a law professor at the University of Pennsylvania who teaches about corporate law and CEO behavior, in an email sent Monday.
The Delaware Court of Chancery case is Albertsons v. Kroger, 2024-1276.
— Jef Feeley and Sabrina Willmer, Bloomberg News
Bloomberg, 2025 Visit Bloomberg.com, L.P.Tribune Content Agency, LLC is the distributor.
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Albertsons wants details on conduct that led to Kroger CEO’s resignation
Albertsons wants details on conduct that led to Kroger CEO’s resignation
Albertsons wants details on conduct that led to Kroger CEO’s resignation