Kroger has filed its counterclaims against Albertsons in connection with the previous failed merger agreement between the two companies, which was terminated in December.

In the court filing, Kroger accuses Albertsons of “engaging in a secret and misguided campaign” with C&S Wholesale Grocers – the divestiture buyer, to pursue its own regulatory strategy, which undermined Kroger’s efforts. 

“Albertsons’s misconduct shockingly came to light in the middle of the antitrust trials under government cross-examination of Susan Morris, Albertsons’s recently promoted CEO designate. 

“As a result of its misconduct, Albertsons is not entitled to the $600 million termination fee under the terms of the parties’ merger agreement, nor is Albertsons entitled to the other damages it seeks,” the company stated.

In December, federal and state judges blocked Kroger and Albertsons’ $24.6 billion proposed merger due to competition concerns.

Shortly after the decision, Albertsons filed a lawsuit against Kroger, claiming that the latter “willfully” breached their merger agreement.

Albertsons said Kroger failed to exercise “best efforts” to secure regulatory approval of the transaction, repeatedly refused to divest assets necessary for antitrust approval, ignored regulators’ feedback, and rejected stronger divestiture buyers.