BLUE BELL REACHES LISTERIA SETTLEMENT

  

Directors with Blue Bell Creameries have reportedly agreed to a $15 million settlement involving the 2015 listeria outbreak that forced a recall of all products and a complete months-long shutdown.

The settlement resolves claims that their alleged mismanagement led to the outbreak.

The deal means a Blue Bell shareholder will not go to court next week, to determine whether Blue Bell’s board did enough to oversee the cleanliness of the company’s plants.

A Delaware judge must still approve the settlement.

According to a Friday court filling, Blue Bell officials agreed to settle in order to cut down the “expense, inconvenience and distraction” the listeria allegations caused.

The $15 million in cash will be returned to the company under the terms of the deal.

Mary Wenske, who owns a stake in Blue Bell’s controlling partnership, alleged in the Delaware suit that the company’s directors turned a blind eye to several-years’ worth of reports about “unsanitary practices and conditions” at the plants which led to the outbreak.

Under the terms of the settlement, the $15 million in cash is slated to be paid by some members of various partnerships that own the company. In addition, a $45.2 million note owed by one Blue Bell partnership to another will be canceled.

The Brenham-based company said in an email it’s pleased the matter has been resolved.