A Delaware court has ruled that the Board of Directors did not act improperly in ousting Arthur T. Demoulas as President and CEO of the supermarket chain last year.

In issuing the decision today, the court ruled “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.”

Demoulas was placed on paid administrative leave on May 28, 2025 amidst allegations by the Board that he failed to keep them informed about actions on behalf of the legendary family chain and that he was organizing another boycott, similar to 2014 when he was locked in a battle for control with cousin Arthur S. Demoulas.

A majority of the Board is controlled by Arthur T’s sisters and their representatives, with both sides filing suit against each other over his eventual firing in September.

The judge’s ruling, released this morning, came months after the sides presented their cases during a three day trial last December.

Demoulas firing in 2014 led to customer boycotts and employee strikes, which eventually resulted in his reinstatement. At the time, the sisters involved in the current family feud assisted their brother in the dispute against the family cousin.

“The business judgment rule protects the Current Directors’ decision to suspend Arthur and his allies and subsequently to terminate Arthur,” the ruling continued. “The court will enter judgment determining that Arthur’s removal as President and CEO was valid.”

“Market Basket is an incredible success by every measure,” wrote Demoulas spokesperson Justine Griffin in a statement this afternoon. “As his father before him, the late Telemachus A. Demoulas, Arthur T. has devoted his entire working life to building and 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.”