Delaware Chancery Court Approves Motion Permitting CSKD to Proceed with Blue Bell Creameries Derivative Suit

On April 18, 2024, the Delaware Court of Chancery granted a motion by the Special Litigation Committee (“SLC”) of the Board of Blue Bell Creameries, Inc. (“Blue Bell”) to permit CSKD,  counsel for stockholder plaintiff Roseann Marchand, as Administrator of the Estate of Jack L. Marchand II, to proceed with the derivative action, which asserts claims for breaches of fiduciary duty against senior officers and the directors of Blue Bell arising from a listeria-related company shut down and stockholder dilution in 2015. The SLC was formed by the Blue Bell Board and the action was stayed following a landmark decision by the en banc Delaware Supreme Court reversing dismissal and upholding the claims. Blue Bell and former Chairman and CEO Paul Kruse pleaded guilty to federal charges related to the listeria crisis. Following an extensive investigation by the SLC, the SLC concluded the claims should proceed and engaged with defendants in a mediation. When the mediation failed, the SLC moved to permit CSKD and the Marchand estate to proceed with the claims.

A copy of the Chancery Court’s Order granting the SLC’s motion to permit CSKD to proceed with the derivative suit can be found here.

Attorneys for this case:

Robert J. Kriner
Scott M. Tucker