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Arthur T. Demoulas Files Delaware Counterclaim Seeking Return as Market Basket CEO

A December trial will test his bid to overturn the board’s September firing after failed mediation.

Overview

  • Demoulas filed a roughly 90-page response and counterclaim in Delaware’s Court of Chancery answering the board’s prior 35-page lawsuit.
  • He is asking the court to declare the board’s actions unlawful and to reinstate him, and he is not seeking monetary damages.
  • The counterclaim alleges the remaining directors colluded with his three sisters, who hold a majority stake, and manufactured work-stoppage claims through conflicted or shallow investigations.
  • The board’s complaint accuses him of waging “guerilla warfare,” ignoring oversight, and being investigated for a potential walkout reminiscent of 2014.
  • The board called his allegations untrue in a statement, and the case is scheduled for trial in Delaware in December.