Conflicts Muddle Direction Of Chancery Blue Bell Suit

Law360 (July 15, 2019, 7:54 PM EDT) -- A Chancery Court battle over control of derivative claims against Blue Bell Creameries’ general partner after a deadly ice cream contamination episode in 2015 has raised a potentially new question about Delaware law rights to appoint litigation probe stand-ins for conflicted general partners in damage suits, a vice chancellor indicated Monday.

Attorneys for Blue Bell’s limited partners, an investor group led by Mary G. Wenske, told Vice Chancellor Joseph R. Slights III that Blue Bell Creameries Inc.’s special litigation committee inherited the “taint” of self-interest in the case, barring them naming a third party to seek a stay in order to...

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