Haggen Food & Pharmacy, a small grocery store chain based in the Pacific Northwest, is suing rival company Albertsons for more than $1 billion in damages.
The Bellingham-based store claims the supermarket chain employed anti-competitive practices, forcing it to close up to 20 percent of its stores. Now, Albertsons has fired back, claiming the accusations are baseless.
"The allegations in the lawsuit are completely without merit," spokesman Brian Dowling wrote in a statement, the Associated Press reports.
Haggen's lawsuit was filed in federal court in Delaware.
Despite the impending court struggle between both companies, the supermarket chain's future continues to look positive.
Albertsons, currently one of the largest grocery chains in the United States, is pursuing an initial public offering of its stock, National Real Estate Investor reports.
The IPO is expected to rake in $100,000 for the Idaho-based company. Revenue made from the deal is intended to be used for paying off corporate debt and boosting in-store sales.
Albertsons' IPO filing with the Security and Exchange Commission does not include specific figures for the price range of stock.
"The chains that went public over the past few years were selling a growth story," DJM Real Estate managing director of supermarket advisory services Andy Couch told the site.
"Albertson's has a little bit of a different story-one that's refreshingly realistic-and I think that's going to appeal to investors."
Albertsons was founded in 1939 in Boise, Idaho.
