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Market Basket directors file countersuit

As threatened, the Class B directors of Demoulas Super Markets filed their own suit against the board, saying they were marginalized and kept in the dark by the majority Class A directors, leading to their decision to boycott meetings.

Jon Springer, Executive Editor

April 4, 2014

2 Min Read
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As threatened, the Class B directors of Demoulas Super Markets filed their own suit against the board, saying they were marginalized and kept in the dark by the majority Class A directors, leading to their decision to boycott meetings.

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The suit comes only days after the shareholders led by Arthur S. Demoulas sued the B directors, seeking a court order compelling members to attend the next board meeting.

In the complaint, Class B directors William Shea and Terence Carleton say a new system of board committees has been used as a means to withhold information from them, saying they were denied opportunities to attend meetings of committees they did not serve on and that they were not granted access to minutes of their meetings and other documents detailing engagement of various consultants. They further allege that the board has systematically ignored items that Shea and Carelton have attempted to add to the agenda.

The Class B directors, aligned with Market Basket president Arthur T. Demoulas, have opposed actions of the Class A faction including the introduction of dividend for shareholders, changes to the profit-sharing plans and the engagement of executive recruiters. They are seeking an order that would permit them to inspect and copy such records and observe all board committee meetings.

 

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.

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