JAB, Krispy Kreme Board Face Suit Over ‘Creeping Takeover’ (1)

A Krispy Kreme Inc. investor filed suit in Delaware against its board and JAB Holding Co., accusing the doughnut chain’s directors of failing to protect minority shareholders from a “creeping takeover” because they’re “beholden” to the consumer goods giant.

The proposed class action, docketed Monday, claims a Krispy Kreme board “stacked” with JAB loyalists has “done nothing” while the conglomerate “rapidly increased its stake,” letting it “creep closer and closer to majority control without any resistance” instead of adopting defensive measures.

“There is little doubt what a truly independent board would do in this situation: implement a rights plan"—also called ...