WSAR NEWS

Judge rules Demoulas' ouster from Market Basket was valid

Arthur T. Demoulas lost his bid for reinstatement Monday after a judge determined Market Basket’s Board of Directors “acted in good faith” by suspending him last May and then firing him in September.

 

“The CEO sought to prove that the [board] breached their duty of loyalty by acting in bad faith to benefit his sisters and their families,” the judge wrote in his decision. “He failed to carry his burden.”

 

The board “rationally concluded” that Demoulas’ “longstanding resistance to board oversight, imperious manner, and refusal to compromise” threatened the grocery store chain’s success, according to the judge.

 

The sisters each control 20% of the Tewksbury-based grocery store chain, while Demoulas owns 28%. The remaining 12% is owned by a trust for the grandchildren.

 

See more at wpri.com.

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