Why Blue Bell Went to Trial Without D&O Coverage: Texas Brief

Blue Bell Shows Risks of Skimpy Insurance

Have you ever wondered why Blue Bell Creameries’ officers and directors decided to proceed to trial over shareholder claims they failed to adequately monitor ice cream production and warning signs before a fatal 2015 listeria outbreak?

Many other companies have had their insurance carriers fund settlements to make these kinds of corporate oversight claims go away. So why hasn’t Blue Bell?

I had a lot of time to ponder this while listening to the Texas ice cream maker’s senior leaders testify during the first-of-its-kind Delaware Chancery Court trial in February. It seemed like ...