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Blue Bell Investors Win Revival of Suit Over Listeria Outbreak

June 18, 2019, 8:31 PM

Blue Bell Creameries Inc. and its leadership must face an investor lawsuit blaming them for losses linked to a listeria outbreak that killed three people, Delaware’s top court ruled June 18.

The suit accuses the 112-year-old ice cream maker, its directors, and two top executives of shirking their duties to shareholders by ignoring contamination risks and failing to implement safety-related reporting or compliance systems.

A Delaware Chancery Court judge dismissed the case last year, finding that it challenged the effectiveness of Blue Bell’s monitoring procedures, not their existence. Ineffective oversight alone doesn’t constitute actionable bad faith under In re Caremark ...