Overview
- The Delaware Court of Chancery, which ruled Monday, upheld the board’s suspension and firing of Arthur T. Demoulas and rejected his bid to return as CEO.
- Vice Chancellor J. Travis Laster wrote that Demoulas was an excellent operator but an imperious leader and said he failed to prove the directors acted in bad faith.
- Laster cited evidence that Demoulas resisted oversight, withheld financial information, and appeared to prepare for a work stoppage, which directors viewed as a risk of a 2014-style boycott.
- The ruling is a win for Demoulas’s three sisters, who hold just over 60% of the holding company, reshaped the board, and now have Don Mulligan serving as interim CEO.
- The dispute escalated after a May 2025 suspension, a September mediation that ended with his removal, and a three-day December trial following an outside probe by Quinn Emanuel.