TEWKSBURY, Mass. — The president of Demoulas Super Markets here has lost his bid to remove a board member and void decisions of the retailer’s board of directors — including some indicating a threat to his reign at the company.
Judge Judith Fabricant of Suffolk Superior Court on Tuesday denied the motion from Arthur T. Demoulas that challenged the appointment of Keith Cowan to the Demoulas board, alleging that Cowan was under the control of Arthur S. Demoulas and the “Class A” shareholders.
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The decision will allow the company to proceed with several measures that Arthur T. Demoulas strongly opposed, including the distribution of a $300 million dividend to shareholders. Cowan also has advocated that the board review Arthur T. Demoulas’ performance as president.
“Arthur T. Demoulas is disappointed by the ruling of the court. The court’s decision is based on the legal definition of irreparable harm. But this is a money grab by some of the shareholders and is the very definition of irreparable harm from a business perspective,” Justine Griffin, spokesperson for Arthur T. Demoulas, said in a statement Tuesday. “Taking out 60% of the cash on hand from the company will break Market Basket’s proven business model, and forever change how the company operates and grows.”
Read more: Shareholders Move to Dismiss Demoulas Suit
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