A Hamilton County judge has ordered former Kroger Co. (NYSE:KR) CEO Rodney McMullen to disclose reasons for his March resignation following a “personal conduct” investigation. The ruling stems from a 2023 contract breach lawsuit filed by 90s pop star Jewel and her business partners.

Court Ruling Denies Protective Order

Judge Christian Jenkins denied McMullen’s request for a protective order on August 1, requiring written disclosure of his exit circumstances and the involved parties, reported Business Insider. McMullen forfeited $11.2 million in bonus and stock payments when he resigned after over 10 years as CEO, according to SEC filings.

Credibility Questions Surface

Plaintiffs Wellness Your Way Festival LLC, partly owned by Jewel and Inclusion Companies LLC, argued McMullen’s resignation details could impact his credibility and reveal “allegedly corrupt corporate culture at Kroger,” court documents show.

McMullen’s attorneys contended the resignation questioning was “aimed at annoying and embarrassing” their client and had “absolutely nothing to do” with the breach lawsuit, according to a BI report. The judge found plaintiff’s arguments for relevance “plausible.”

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Festival Partnership Dispute

The lawsuit centers on allegations that Kroger breached a five-year partnership agreement for its annual Wellness Festival in Cincinnati. Jewel, born Jewel Kilcher and business partner Trevor Drinkwater claim they conceived the festival concept, which ran in 2018, 2019, and 2021.

Court papers allege Kroger “unilaterally terminated the partnership” then produced “highly profitable” events in 2022 and 2023 using plaintiffs’ materials and contacts. The plaintiffs seek over $7 million in damages, according to the report.

Market Context

The case emerges amid broader scrutiny of grocery consolidation. The Federal Trade Commission recently blocked Kroger’s proposed $24.6 billion merger with Albertsons Companies Inc. (NYSE:ACI), citing competition concerns in worker markets and consumer pricing.

Price Action: Kroger Co. closed at $70.33 on Wednesday, down 4.38% for the day. Pre-market trading on Thursday showed a 0.24% rise to $70.50. Year to date, shares are up 13.55%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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