Sponsored By

Demoulas CEO Sues Over Board Dispute

TEWKSBURY, Mass. — Arthur T. Demoulas, chief executive officer of Demoulas Supermarkets, on Thursday asked a Massachusetts Superior Court judge to invalidate all actions of the company’s board of directors since July 18, alleging the deciding vote in matters since then was made by a board member that was not “disinterested and independent” as required by a previous court order.

Jon Springer, Executive Editor

September 5, 2013

2 Min Read
Supermarket News logo in a gray background | Supermarket News

TEWKSBURY, Mass. — Arthur T. Demoulas, chief executive officer of Demoulas Supermarkets, on Thursday asked a Massachusetts Superior Court judge to invalidate all actions of the company’s board of directors since July 18, alleging the deciding vote in matters since then was made by a board member that was not “disinterested and independent” as required by a previous court order.

Those board decisions include payment of a dividend to shareholders and changes to the trustees overseeing profit-sharing at the parent of Market Basket stores. In court papers, Arthur T. Demoulas said the moves were designed to enrich the Class A shareholders controlled by his cousin Arthur S. Demoulas at the expense of Market Basket stores and its Class B shareholders.

CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.

The Demoulas board is made up of seven members: Two Class A directors named by the family of Arthur S.; two Class B seats going to the Arthur T. Demoulas family; and three Class A/B directors who are supposed to be “disinterested and independent” according to a court ruling.

The lawsuit filed Thursday alleges that a newly elected A-B director, Keith Cowan, is not independent, but “is under the controlling influence of Arthur S. Demoulas.” Cowan was a former Class A board member but was reclassified as an A/B member when Arthur S. Demoulas’ family regained voting control of the company at its annual meeting in June.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like