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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.

Susan Montgomery/Shutterstock.com

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.

While we acknowledge the potential of KR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Mid-Cap Value Stocks to Buy Right Now and 10 Must-Buy US Stocks to Invest In.

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

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