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Business Organizations Keyed to Macey
Marchand v. Barnhill
Citation:
212 A.3d 805 (2019)Facts
The facts arise from a serious listeria outbreak at Blue Bell Creameries USA, Inc., an ice ream manufacturer, that caused the deaths of three people. The outbreak followed years of alleged compliance and governance deficiencies at Blue Bell. A shareholder brought a derivative suit against the board of directors, alleging that the directors breached their duty of loyalty. Under federal law, Blue Bell is required to comply with regulations and establish controls to monitor for, avoid and remediate contamination and conditions that expose the company. The board alleges that it never received any information about listeria or about food safety issues. The board never received the information about listeria.
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