On Tuesday, both a federal district court in Oregon and a state court in Washington blocked the $24.6 billion deal, saying it would reduce competition, which would harm shoppers.

By Wednesday morning, Albertsons abandoned the merger and filed a lawsuit against Kroger, alleging a willful breach of contract for not doing enough to win regulatory approval for the merger. Kroger, in a statement in response, said Albertsons is deflecting its own responsibility.

The two are likely headed for a new bitter legal fight with money at stake. Albertsons is seeking “billions of dollars” in damages for lost shareholder value, legal costs and time in limbo. It also wants the $600 million merger break-up fee, to which Kroger says Albertsons is “not entitled.”