Jack in the Box Sues Del Taco Over Post-Sale Workers Comp (1)

The company that bought Del Taco from Jack in the Box Inc. last year is refusing to cover workers compensation costs it agreed to take on, according to an unsealed lawsuit.

Jack in the Box is suing Yadav Enterprises Inc. in Delaware’s Chancery Court over the deal divesting the 550-location Del Taco, allegedly the country’s second-largest Mexican-American fast food brand. The sale was part of the “Jack on Track” turnaround plan announced last April by the hamburger giant, which took the taco chain private for $585 million in 2022.

“Mere months after the two agreements were executed, defendants began breaching ...