Dive Brief:
- David Murdock, Dole Food Inc.'s CEO, will now go to the trial he was trying to avoid over the privatization of his company, after shareholders cried foul on the deal.
- Delaware Chancery Judge Travis Laster would not dismiss the case brought up against Murdock, though Murdock, members of Dole's board of directors, and Deutsche Bank AG all attempted to have the case thrown out. Deutsche Bank AG reportedly helped Murdock determine the details of the privatization arrangement.
- It appears not all directors may have been readily onboard with the deal. According to Bloomberg, Laster said, “Murdock had previously threatened and taken punitive action against directors who did not accede to his wishes.”
Dive Insight:
The New York Times in 2013 compared Murdock's fishy behavior to the last time Dole was public in 2003. The Times reported, "Four of the directors on Dole’s seven-member board, including Mr. Murdock, were directors when the company was public the first time. Two of the directors are former or current executives of Dole, with more than a decade at the company." Even the same law firm and Deutsche Bank were also involved back then. Through this lawsuit, shareholders voiced their concerns about Murdock's own connections, which they believe he used to push the privatization deal through.