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Business Organizations Keyed to Sjostrom
Marchand v. Barnhill
Citation:
212 A.3d 805 (Del. 2019)Facts
Blue Bell Creameris USA, Inc. suffered a listeria outbreak in early 2015, causing the company to recall all of its products, shut down plants, and lay off over a third of its employees. After Blue Bell’s full product recall, the FDA inspected each of the company’s three plants. Each was found to have major deficiencies. The FDA found a failure to manufacture foods under conditions and controls necessary to minimize the potential for growth of microorganisms, to maintain buildings in repair sufficient to prevent food from coming adulterated and to prevent condensation from occurring. Blue Bell’s failure to contain listeria’s spread in its manufacturing plants caused listeria to be present in its products, which caused death of three people. Stockholders suffered losses and brought a derivative suit against the executives and directors of Blue Bell.
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