<p>A class action lawsuit claiming Safeway and Albertsons have <B>violated shareholder rights</b> has been filed recently by San Diego law firm Robbins Arroyo LLP in the U.S. District Court, Northern District of California, Oakland Division.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The suit, filed on behalf of Safeway's shareholders, claims that the defendants supposedly “breached or aided and abetted the other defendants’ breaches of their duties and obligations owed to Safeway shareholders,” according to a press release. Additionally, the complaint alleges that the defendants “filed a materially false and misleading preliminary proxy statement” that omitted and/or misrepresented information that would <B>affect Safeway shareholders’ ability to approve or disapprove the deal</b>. However, the release makes no mention of the presumed omitted or misrepresented information. What does this mean for the proposed $9 billion deal?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">When the merger was announced in early March, Safeway shareholders were said to receive, for each Safeway share they own, $32.50 in cash and the right to receive pro-rata distributions of net proceeds from primarily non-core assets, estimated to be worth $3.65 per share. The complaint seeks <B>injunctive relief</b> on behalf of the plaintiff and all other similarly situated shareholders of Safeway as of March 6, 2014.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Until more information becomes available, it appears that the suit won’t put the brakes on the deal for now. Still, this isn't the first time someone has had issues with the merger. Previously on ANUK, we reported on a group named Food & Water Watch which estimated that "increased retail grocery concentration in the 44 markets where the two chains currently compete could increase consumer grocery prices between <B>$900 million and $2 billion</b> every year." The group alleged that the merger would <B>raise food prices</b> for consumers who have fewer options where to shop, while harming local and regional farmers who sell into Safeway's "locally grown" program. For more on this story, check out the link below.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.andnowuknow.com/buyside-news/albertsons-and-safeway-merger-could-be-blocked-amid-increasing-concerns/11405/christofer-oberst" target="_new">Click here to read: Albertsons and Safeway Merger Could be Blocked Amid Increasing Concerns </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Will further issues arise? The closing of the merger is still slated for the fourth quarter of 2014. We're getting close, but it still remains to be seen whether or not these claims will make an impact at all before that time frame.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Stay tuned to AndNowUKnow as we keep an eye on this developing story. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.safeway.com/ShopStores/Investors.page" target="_new"> Safeway </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.albertsons.com" target="_new"> Albertsons </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
