Quinn Emanuel Secures Major Victory for New England Supermarket Giant Market Basket
In a much-covered battle over the iconic New England supermarket giant, known as Market Basket, Quinn Emanuel secured a major victory in expedited proceedings in the Delaware Court of Chancery.
In a thorough 125-page opinion, the Court determined that Market Basket's Board of Directors acted independently, in good faith, and in the best interests of the company and its stockholders in removing its former CEO, Arthur T. Demoulas, over concerns about his management and corporate governance issues. The Court rejected Defendant’s request for reinstatement, as well as his counterclaim that the termination was improper and that the Board acted in bad faith.
The case raised significant legal issues of real consequence for Delaware corporations. It tested the boundaries of Delaware General Corporation Law Section 225 and how it applies to at-will officers, including CEOs. This landmark decision confirmed that the burden rests with the terminated executive to show bad faith or breaches of duty by directors.
Congratulations to the Quinn Emanuel trial team, led by Harvey J. Wolkoff, Aliki Sofis, Alexander del Nido, Taylor Comerford, and to associates Marla Blum, Tzivya Beck, Nicole Arata, John Ferraro, Jasmine Paek, Minas Rasoulis, and William Locke.