Business

Haggen files lawsuit against Albertsons for $1 billion in damages

Dave Gallagher - The Bellingham Herald
Fred Dominguez checks out his handy work after installing a new sign in front of a Haggen grocery store, formerly an Albertsons, located in Palmdale, on March 23, 2015.
Fred Dominguez checks out his handy work after installing a new sign in front of a Haggen grocery store, formerly an Albertsons, located in Palmdale, on March 23, 2015. Los Angeles Times

Haggen Food and Pharmacy has filed a lawsuit against Albertsons seeking more than $1 billion in damages over a deal that has become acrimonious.

The complaint alleges that Albertsons engaged in “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states.” It was filed on Tuesday, Sept. 1, in the U.S. District Court for the District of Delaware. Haggen estimates the damages would exceed $1 billion, with the actual amount to be determined at trial.

In the 55-page complaint, Haggen lists a variety of grievances against Albertsons that have taken place since the grocer agreed to acquire 146 stores in five states — including six stores in San Luis Obispo County — in December.

Haggen's complaints against Albertsons include the following:

  • Using Haggen’s confidential conversion scheduling information to create aggressive marketing campaigns intending to hurt Haggen grand openings;
  • providing Haggen with false retail pricing data, forcing Haggen to unknowingly inflate prices;
  • deliberately under-stocking certain inventory at Haggen-acquired stores and overstocking perishable inventory that Haggen had to throw away;
  • diverting Haggen inventory to Albertsons stores.

    • In an email response, Brian Dowling, vice president of public affairs at Albertsons, said the allegations in the lawsuit “are completely without merit.” Read more at bellinghamherald.com »

    This story was originally published September 1, 2015 at 4:14 PM with the headline "Haggen files lawsuit against Albertsons for $1 billion in damages."

    Related Stories from San Luis Obispo Tribune
    Get unlimited digital access
    #ReadLocal

    Try 1 month for $1

    CLAIM OFFER