Demoulas Market Basket Feud Adds Fuel to the Fire with Lawsuit and Countersuit


Mon. April 7th, 2014 - by Jordan Okumura-Wright

<p>The Market Basket Board of Directors feud continues as two new lawsuits were recently filed between two sides of the Demoulas family, according to The Lowell Sun.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The first lawsuit, filed recently in Superior Court, accuses the side of the Board that is loyal to CEO Arthur T. Demoulas of allegedly boycotting the Board's March 31 meeting.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In a countersuit, the group of shareholders affiliated with Demoulas' rival cousin, Arthur S. Demoulas, has sued two directors, Terrence Carleton and William Shea, as well as the company itself. The suit also asks the judge to compel Carleton and Shea to attend the next board meeting on April 28.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In a separate suit, Carleton and Shea contend that they have been "deprived of the ability to perform their duties," and were prevented from attending Board of Director committee meetings, "where much of the substantive work is accomplished, denied access to documents and the innumerable consultants the new board has hired."<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">"It is not only the last straw but symptomatic of the profoundly disturbing dynamic that has increasingly infected this board since you have been appointed chairman," an attorney for Carleton and Shea said in a letter to board Chairman Keith Cowan.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">These lawsuits are only the latest installment of an ongoing battle between rival cousins, Arthur T. Demoulas and Arthur S. Demoulas. Shareholders on the side of the company's CEO, Arthur T. Demoulas, own Class B shares and recently lost their majority stake in the company last June. Shareholders affiliated with Arthur S. Demoulas' side of the family own Class A shares and now control majority stake. Last summer, another lawsuit was filed because a few directors who sided with the CEO skipped a meeting so that there wouldn't be a quorum and no votes could be held.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">How these developments may affect Market Basket's bottom line remains to be seen. Will this feud come to an amicable resolution soon? Stay tuned to AndNowUKnow as we continue to follow this story as it unfolds.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.mydemoulas.net/" target="_new"> Market Basket </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">