News & Analysis as of

Food Manufacturers Listeria

The Volkov Law Group

The Fish Rots from its Head Down – Review of Criminal Charges Against Blue Bell’s Former CEO Paul Kruse

The Volkov Law Group on

The often-used phrase of “tone at the top” is inartful in my view – an organization’s leadership culture is defined much more broadly than the word “tone” implies.  A company’s culture extends well beyond senior leadership...more

Carlton Fields

A Case of Mass Listeria: Insurer’s Duty to Defend in New Jersey Contaminated Pizza Crusts Suit

Carlton Fields on

Last week, in Conte’s Pasta Co. v. Republic Franklin Insurance Co., a New Jersey federal court ruled that Republic Franklin Insurance Co. was obligated to indemnify Conte’s Pasta for the costs incurred defending against a...more

Mintz - Health Care Viewpoints

Not So Sweet: Failure to Timely Recall Contaminated Ice Cream Results in Major Consequences for Texas Manufacturer

On May 1, 2020, Blue Bell Creameries L.P. (Blue Bell) agreed to plead guilty to charges that it distributed contaminated ice cream products that were linked to a 2015 listeriosis outbreak. The Blue Bell outbreak made...more

Hogan Lovells

Blue Bell Creameries Enters into Negotiated Agreements with the Department of Justice to Resolve Investigations Related to...

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On May 1, 2020, Blue Bell Creameries L.P. (Blue Bell) and the U.S. Department of Justice (DOJ) entered into two separate agreements related to the 2015 listeriosis outbreak linked to Blue Bell ice cream. This memorandum...more

Thomas Fox - Compliance Evangelist

Blue Bell: Failures of Role of the Board – Part 2: Caremark Duties

Over the past couple of blog posts, we have considered the guilty pleas by Blue Bell Creameries to charges that they distributed adulterated ice cream products and paid a criminal fine and forfeiture amount totaling $17.25...more

Thomas Fox - Compliance Evangelist

Paul Kruse, Telling the Truth and Public Safety: Former Blue Bell CEO Criminally Indicted

Monday, we considered the guilty pleas by Blue Bell Creameries to charges that they distributed adulterated ice cream products and pay a criminal fine and forfeiture amount totaling $17.25 million. According to the Department...more

Thomas Fox - Compliance Evangelist

May the Fourth Be With You – Farewell to Blue Bell

May 4th is universally recognized (at least in the universe I inhabit) as Star Wars Day. According to Wikipedia, “May 4 is called Star Wars Day because of the popularity of a common pun spoken on this day. Since the phrase...more

Jones Day

Delaware Supreme Court Reinforces Directors’ Oversight Obligations on Mission-Critical Subjects

Jones Day on

The Situation: Directors of Blue Bell Creameries USA, Inc. ("Blue Bell") were sued for breach of fiduciary duty following a lethal listeria outbreak in its ice cream facilities. Applying the duty of oversight first...more

Wilson Sonsini Goodrich & Rosati

FDA Suspends Facility Registration of Texas-Based Seafood Producer

On July 22, 2019, the U.S. Food and Drug Administration (FDA) suspended the food facility registration of Topway Enterprises Inc.'s (Topway) Houston, Texas seafood processing facility. As a result, Topway cannot sell or...more

Sheppard Mullin Richter & Hampton LLP

Delaware Supreme Court Allows Caremark Claim to Proceed Against Directors of Ice Cream Manufacturer Following Listeria Outbreak

In Marchand v. Barnhill, No. 533, 2018, 2019 Del. LEXIS 310 (Del. June 18, 2019), the Delaware Supreme Court (Strine, C.J.) reversed a Delaware Court of Chancery (Slights, V.C.) order dismissing a derivative claim alleging...more

Troutman Pepper

Delaware Supreme Court Issues Guidance On Board Oversight Responsibilities

Troutman Pepper on

A director’s duty to make a good faith effort to oversee the operations and management of a Delaware company is well-established. In a recent case, Marchand v. Barnhill, the Delaware Supreme Court provided guidance to boards...more

A&O Shearman

M&A Watch — Caremark Unfrozen: Delaware Supreme Court Revisits Oversight Claims

A&O Shearman on

The Delaware Supreme Court recently took the opportunity to revisit Caremark with its en banc decision in Marchand v. Barnhill, No. 533, 2018 (Del. June 19, 2019). In Marchand, the Court reversed the dismissal of a...more

Dechert LLP

Delaware Supreme Court Reverses Dismissal of Caremark Claim, Finding Lack of Board-Level Oversight and Director Independence

Dechert LLP on

In Marchand v. Barnhill et al. (“Blue Bell”),1 the Delaware Supreme Court on June 19 unanimously reversed the dismissal of a shareholder derivative lawsuit against the members of the board of directors and two officers of...more

Skadden, Arps, Slate, Meagher & Flom LLP

Director Independence and Oversight Obligation in Marchand v. Barnhill

On June 18, 2019, in Marchand v. Barnhill, the Delaware Supreme Court, in an opinion written by Chief Justice Leo E. Strine, Jr. on behalf of a unanimous court, issued a decision reversing the Court of Chancery’s dismissal of...more

Hogan Lovells

CDC Publishes Updated Report on Preliminary Foodborne Illness Trends

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Last week, the Centers for Disease Control and Prevention (CDC) released a report entitled, “Preliminary Incidence and Trends of Infections with Pathogens Transmitted Commonly Through Food – Foodborne Diseases Active...more

Robinson & Cole LLP

Avoiding a Rocky Road: Lessons For Manufacturers From Blue Bell Creameries’ Listeria Investigation

Robinson & Cole LLP on

Ice cream maker Blue Bell Creameries has found itself in a sticky situation that underscores the importance of a having a comprehensive and robust compliance program, even for companies who do not manufacture consumer...more

Ballard Spahr LLP

Criminal Charges Brought in Food Safety Case

Ballard Spahr LLP on

In another show of force against food processors, federal prosecutors in Colorado recently brought criminal charges against two brothers who owned a cantaloupe farm linked to a 2011 listeria outbreak that killed 33 people....more

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