Delaware's Supreme Court has overturned the dismissal of a shareholder lawsuit against one the country's largest ice cream makers after a 2015 listeria outbreak that killed three people.
Delaware's Supreme Court has overturned the dismissal of a shareholder lawsuit against one the country's largest ice cream makers after a 2015 listeria outbreak that killed three people.
The court ruled Tuesday that a judge erred because the plaintiff had not demanded that the board of Blue Bell Creameries take action itself before the lawsuit was filed. That demand requirement can be waived if a plaintiff raises reasonable doubts about the impartiality of directors because of close ties to management. Former CEO Paul Kruse is a defendant in the suit.
The court also said the lawsuit adequately alleges that the board at Blue Bell failed to implement any system to monitor food safety performance or compliance.
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