DOVER, Del. (CBSDFW.COM/AP) — Delaware’s Supreme Court has overturned the dismissal of a shareholder lawsuit against one the country’s largest ice cream makers after a 2015 listeria outbreak that killed three people.
At the time, Blue Bell Creameries promised vigilance as it worked to rebuild customer loyalty in the wake of the outbreak.READ MORE: State Fair Taking Extra Measures To Keep Guests Safe
The court ruled Tuesday that a judge erred because the plaintiff had not demanded that the board of Blue Bell Creameries take action itself before the lawsuit was filed. That demand requirement can be waived if a plaintiff raises reasonable doubts about the impartiality of directors because of close ties to management. Former CEO Paul Kruse is a defendant in the suit.READ MORE: Officials: Man Suspected Of Making Threats Against Texas Lawmakers Arrested
The court also said the lawsuit adequately alleges that the board at Blue Bell failed to implement any system to monitor food safety performance or compliance.MORE NEWS: State Fair Offers Hundreds Of Free Acts, Shows And Exhibits
The ‘little creamery in Brenham’ company suffered significant financial losses due to the outbreak.