The Market Basket board was justified in firing longtime CEO Arthur T. Demoulas, a judge ruled Monday.
Delaware Court of Chancery Vice Chancellor J. Travis Laster said the board, controlled by Demoulas’ three sisters, was “valid” to suspend and remove Demoulas from his position as president and CEO last year.
Demoulas had countersued, arguing that his sisters were “fueled by greed and envy.”
“Arthur had the burden at trial to prove that a majority of the Current Directors acted in bad faith,” the judge was quoted by CBS News Boston. “He failed to carry his burden.”
The board suspended Demoulas a year ago, saying there were credible allegations that he was planning a work stoppage.
Demoulas said at the time that board’s investigation was “a farcical cover for a hostile takeover.”
