A Delaware judge has upheld the firing of longtime Market Basket CEO Arthur T. Demoulas, ruling the company’s board acted in good faith when it removed him from the role last year.
In a decision issued earlier this week, Delaware Court of Chancery Vice Chancellor J. Travis Laster found that Demoulas failed to prove claims that the board breached its fiduciary duties in suspending and later terminating him.
“Arthur had the burden at trial to prove that a majority of the Current Directors acted in bad faith. He failed to carry his burden,” Laster wrote in the ruling.
The court’s decision affirms the board’s actions following a months-long internal dispute at the family-owned grocer, which operates roughly 90 stores across New England.
Demoulas, widely known as “Artie T,” was suspended in May 2025 amid allegations he was planning a work stoppage that could disrupt operations. He was formally fired in September after mediation efforts failed, prompting a legal battle over control of the company.
In court, Demoulas argued that the board – controlled by his sisters – acted improperly and sought legal remedy for his reinstatement. The judge rejected those claims, concluding directors had reasonable grounds and acted in the company’s best interest.
The board members believed “in good faith” that Demoulas might be planning a repeat of the 2014 boycott of Market Basket stores that occurred after he was first fired by his cousin known as “Arthur S.”
The judge noted that, “They rationally feared that Arthur felt cornered and would run the same play in 2025. Each testified credibly to believing that Arthur was behind the 2014 walkout and that he would try it again.”
The ruling also pointed to tensions between Demoulas and the board, including what the court described as a deteriorating working relationship and disputes over oversight and access to company information.
The decision marks the latest chapter in a long-running family power struggle that has periodically disrupted the grocer, including a high-profile 2014 employee walkout tied to earlier leadership disputes.
With the ruling, the board’s authority to remove Demoulas is legally affirmed, closing a key front in the governance fight while leaving broader questions about the company’s long-term leadership unresolved.
The Board of Directors issued this statement Monday.
The board released this statement afterwards, “With this behind us, we’re looking forward to continuing to focus on everything that makes Market Basket so important to our communities. As the Board has said repeatedly, the Company is not for sale. Market Basket will continue to be a family-owned and operated business, offering the lowest prices and best value for customers, creating good jobs with profit sharing for associates, and supporting its customers and communities – well into the future.”
