Dunn Lambert, LLC
We mean business
Comprehensive legal services for businesses in New Jersey and New York call 201-957-0874
Dunn Lambert, LLC
comprehensive legal services for businesses call 201-957-0874

Starbucks being sued by shareholders over business dispute

Shareholders for Starbucks have filed a lawsuit for $2.8 billion due to an alleged contract breach with Kraft Foods. According to the lawsuit, the executive officers and board of directors for Starbucks breached their fiduciary duties. In November, it was ordered that Starbucks give Kraft $2.75 billion. This involved how the packaged coffee was distributed in grocery stores, and an arbitrator said that a breach of contract indeed happened.

A breach of contract means that a contract was drafted between two parties and one of the parties did something that went against the contract. Not honoring a contract can result in the party considered to have caused the breach having legal action taken against it.

In this case, Starbucks allegedly breached a contract it had with Kraft and the shareholders for Starbucks have posed legal action against Starbucks. This was as a result of the executives downplaying the negative aspects of that breach.

The business litigation is happening. Starbucks representatives said that they know of the complaint and that they will respond in due course. They state that they are responsible to their shareholders and that they take this very seriously.

The lead plaintiff is demanding almost $3 billion in damages for the shareholders. She also wants Starbucks to make changes to their bylaws so that stockholders have greater input. The attorney representing the lead plaintiff was contacted for a statement, but has yet to respond. The case is ongoing, so it may take some time for the result to become apparent.

Source: Business Insider, “Shareholders Sue Starbucks for $2.8 Billion Over Dispute With Kraft,” Hayley Peterson, Jan. 22, 2014

No Comments

Leave a comment
Comment Information

Office Location

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map
Phone: 201-957-0874
Fax: 201-291-0140
Telephone: 212-768-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2016

GET ANSWERS from a firm
with a sense of business.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Review US
Subscribe to This Blog's Feed FindLaw Network