In the wake of the recent Market Basket courtroom battles between Arthur T. Demoulas and his cousin Arthur S. Demoulas, Judge Judith Fabricant, a Suffolk County Superior Court judge, refused to stop a $300 million payout to Market Basket shareholders or block other board votes.
Earlier this month, Arthur T., CEO of Market Basket, and other so-called “B” shareholders asked the court to put the payout on hold until a judge could decide whether Keith Cowan, the company’s interim board chairman, was independent. Cowan was originally aligned with the Arthur S. Demoulas side of the family as one of his “A” shareholders before being elected as one of three independent directors. However, Arthur T. filed a lawsuit to request Cowan’s removal from the board claiming that he was not truly independent. Cowan was accused of being “controlled” by Arthur S., who had been seeking the removal of his cousin after blaming him of fiscal mismanagement and “self-dealing” real estate transactions with other family members, including his wife , according to Boston Herald.
Justine Griffin, spokeswoman for Arthur T., stated that he was allegedly disappointed by the ruling. “The court’s decision is based on the legal definition of irreparable harm,” said Griffin. “But this is a money grab by some of the shareholders and is the very definition of irreparable harm from a business perspective. Taking out 60% of the cash on hand from the company will break Market Basket’s proven business model and forever change how the company operates and grows.”
Stay tuned to DeliMarket TV as we continue our coverage on the Demoulas courtroom battles.