BOSTON (WHDH) - A judge has ruled against former Market Basket CEO Arthur T. Demoulas in his lawsuit against the company, saying his removal as president was valid.
Demoulas asked the court to reinstate him as CEO, arguing that his firing was illegal. A judge in Delaware ruled that the board of directors acted in good faith in their decision to suspend and fire him.
The lawsuit stems from a familial power struggle within the popular grocery chain. Demoulas was suspended in May 2025 over accusations that he was planning to disrupt business operations with a work stoppage. He was then fired in September 2025.
After a failed mediation, the board filed suit to confirm the validity of their actions. Demoulas then counter-sued, calling for his reinstatment, claiming his three sisters unlawfully pushed him out.
The judge evaluated the testimony of 14 witnesses, and hundreds of exhibits and written submissions before reaching a decision.
In a statement, a spokeperson for Demoulas said, “Market Basket is an incredible success by every measure…Arthur T. has devoted his entire working life to building a growing Market Basket in a way that has brought benefit to all stakeholders — its Associates, its customers, the communities that Market Basket serves, and its shareholders.”
The Market Basket Board celebrated the ruling, saying in a statement, “With this behind us, we’re looking forward to continuing to focus on everything that makes Market Basket so important to our communities.”
The board also said it plans to keep Market Basket family run, and it will not be sold.
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