Latest news with #WellnessFestival
Fox News
5 days ago
- Business
- Fox News
Former Kroger CEO must explain reason for resignation to court in pop star Jewel's ongoing lawsuit
Kroger's former CEO has been ordered by a judge in Ohio to explain his abrupt resignation from the grocery store chain earlier this year in an unrelated lawsuit that involves pop star Jewel. The "You Were Meant for Me" singer and a business partner sued Kroger over its involvement in launching the company's Wellness Festival and are seeking damages over contractual disputes, according to Fortune. In their lawsuit, they say the reason for Rodney McMullen's resignation in March could be pertinent to their case "regarding his credibility and relevant to the existence of an allegedly corrupt corporate culture at Kroger," court documents dated Aug. 1 and obtained by Fox News Digital said. McMullen's lawyers had argued that requiring him to disclose why he resigned would be "irrelevant" to the case and personally "embarrassing" and sought a protective order, but Judge Christian A. Jenkins ordered him to submit his reasons for resigning in writing, which will be privately reviewed by the judge. In Kroger's press release this year announcing McMullen's resignation, the company said that while his behavior was "'unrelated to the business,' his personal conduct was 'inconsistent with Kroger's Policy on Business Ethics,'" according to court documents. "Based on this, it is plausible that this evidence could reflect on Mr. McMullen's credibility, or Kroger's corporate culture, as alleged by Plaintiff," the judge said, adding that "without knowing the basis for the alleged embarrassment, it is impossible to weight it against the relevancy and proportionality." He added that, despite the "court's reticence," he would order McMullen to answer privately under oath "the facts and circumstances relating to your resignation from the Kroger Co." After a review, the court could grant McMullen's request for a protective order and make his answer for "judicial eyes only." The Aug. 1 order gave McMullen seven days to comply. Fox News Digital has reached out to Jewel and Kroger for comment.
Daily Mail
5 days ago
- Business
- Daily Mail
Former CEO of Kroger will have 'embarrassing' secrets exposed in bombshell lawsuit from '90s popstar
The former CEO of Kroger has been ordered to provide an account as to why he was forced to resign from the grocery giant earlier this year as part of a lawsuit filed by songstress Jewel. Rodney McMullen, 65, was the head of the firm since 2014 before standing down amid a probe into his personal conduct. At the time of his abrupt exit, the company said his behavior was 'inconsistent' with its own policy of business ethnics. McMullen's departure has become a focal point in a lawsuit not related to his exit, Jewel sued Kroger over contractual issues relating to their Wellness Festival. The songstress claims she was cut from the festival despite being central to it forming, and that she and her business partner are owed damages. Lawyers for the 'You Were Meant For Me' singer argued that McMullen's resignation could be relevant in exposing what they described as a 'corrupt corporate culture'. His lawyers pushed back against this, saying his exit was both 'completely irrelevant' and 'embarrassing', the judge ordered him to answer in writing anyway. According to The Cincinnati Enquirer, Common Pleas Court Judge Christian Jenkins ordered McMullan to explain the circumstances surrounding his resignation. Jenkins wrote: 'McMullen's generalized allegation of embarrassment does not satisfy his burden. 'It is plausible that this evidence could reflect on Mr. McMullen's credibility or Kroger's corporate culture.' The ruling doesn't mean that his testimony will be made public, McMullen has sought to seal his testimony which is currently under consideration, the outlet said. The lawsuit from Jewel was filed in 2023 and claims she lost over $2 million in out-of-pocket costs and at least $5 million in profits. It adds that this loss was a direct result of Kroger's 'corporate bullying mentality that led to its breach of the partnership agreement and theft of the festival'. Kroger has filed a motion to have the lawsuit thrown out, saying that there was no enforceable contract in place. At the time of McMullen's exit, he alerted the board to his 'certain personal conduct' on February 21 and independent lawyers were drafted in to probe his behavior. Kroger insisted the scandal 'is not related to the company's financial performance, operations or reporting.' His resignation caused him to forfeit $11.2 million worth of unvested stock and options and any eligibility for a bonus for the fiscal year that ended on February 1, reported the Cincinnati Enquirer. 'In connection with his resignation, Mr. McMullen will forfeit all unvested equity awards outstanding under the Company's 2019 Long-Term Incentive Plan and will not be eligible to receive payment of a 2024 bonus,' Kroger said in Securities and Exchange Commission filings. 'Mr. McMullen will retain any equity awards that, as of the resignation date, are fully vested pursuant to their terms or for which the performance period is complete.' The terms of his departure appear harsher than for a typical 'voluntary termination or retirement,' according to the newspaper. SEC filings revealed McMullen's total compensation from Kroger in 2023 was $15.7 million. He was allowed to keep $14.7 million worth of stock and options that were vested as of his March 3 resignation. However, he may have lost millions in bonus pay, as McMullen took home more than $4 million from the incentive plan in 2021 and 2022. If he had delayed his resignation, McMullen may have been able to keep an additional $6.3 million worth of stock and options that were set to vest by March 11. McMullen began his career with Kroger in 1978 as a part-time stock clerk and bagger at a store in Lexington, Kentucky. He worked his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009. McMullen was named Kroger's CEO in 2014 and chairman in 2015. He held both positions until his dismissal.
Yahoo
6 days ago
- Business
- Yahoo
Kroger's CEO mysteriously resigned. An unrelated lawsuit involving Jewel could reveal why
A Cincinnati judge has ordered former Kroger CEO Rodney McMullen to explain—in writing—why he unexpectedly resigned in March, forcing him to confront what his attorneys call 'completely irrelevant' and 'embarrassing' questions in a lawsuit involving singer Jewel. McMullen, who led the Cincinnati-based grocery giant for more than a decade, resigned following what Kroger described as an investigation into his 'personal conduct.' As part of his departure, McMullen forfeited all of his unvested equity and bonuses—a total of $11 million, according to an SEC filing. That decision raised eyebrows for Eric Chaffee, a corporate law professor at Case Western Reserve University. 'Usually a CEO has downside protection if they leave,' he told Fortune. 'The fact that he was willing to give that up may provide some insight that what went on here was something he did not want revealed.' Kroger offered no further explanation at the time, sparking speculation in business circles. However, the mystery is now back in the spotlight due to an unrelated lawsuit filed against Kroger by singer-songwriter Jewel, and one of her business partners, over Kroger's annual Wellness Festival. The plaintiffs claim they played a key role in launching the festival and are seeking damages over alleged contractual disputes. Their attorneys argue that questioning McMullen about the reasons for his resignation could be relevant to his credibility as a trial witness, and could shed light on the 'allegedly corrupt corporate culture at Kroger.' McMullen's legal team has fought the request, but earlier this month, Hamilton County Common Pleas Court Judge Christian Jenkins ordered him to submit a written explanation by Aug. 8, including the names of those involved. Whether the public ever sees that document is still uncertain. If Jenkins decides the information is relevant, it could be kept under seal. If it's not deemed relevant, it won't be entered into the record at all. While prying into a CEO's exit is 'somewhat invasive,' Chaffee noted the court could find it justified, especially since Kroger itself tied the resignation to 'business ethics.' In litigation, he explained, 'If the other side offers a witness, you want to test that individual's credibility… to figure out whether they behave in an ethical manner.' That relevance test weighs heavily against another legal principle: the risk of unfairly embarrassing a witness. But Chaffee noted that in the U.S., there's a 'strong preference that the public has access to judicial proceedings—not just to be nosy, but because transparency makes for a fairer legal system.' That principle may prevail. However, for Kroger, keeping the reason private could protect its brand and stave off shareholder lawsuits or regulatory scrutiny. 'There's a cloud that's left by his departure,' Chaffee said, 'but companies sometimes decide that's better than the damage that could come from disclosure.' McMullen likely has his own reasons for staying quiet, Chaffee added. 'It might be something embarrassing to him personally, to a family member, or something that could have future repercussions for his career,' he said. 'If you're a CEO and there are news reports out there that you've done something you shouldn't have, getting another top job can become very, very difficult.' While Chaffee doesn't expect the case to set legal precedent—'this is probably more factually interesting than it is legally interesting'—he said the stakes are still high. The plaintiffs' strategy, he noted, is a common but effective pressure tactic: 'Seeking information that may potentially be damaging to Kroger… may incentivize them to settle this case.' This story was originally featured on Sign in to access your portfolio
New York Post
6 days ago
- Business
- New York Post
Ex-Kroger CEO ordered by judge to reveal ‘embarrassing' details in lawsuit involving singer Jewel
A Cincinnati judge has ordered former Kroger CEO Rodney McMullen to provide a written account of why he abruptly left the grocery giant in March — potentially exposing details the executive's attorneys have called 'completely irrelevant' and 'embarrassing' in a lawsuit that involves singer Jewel. The circumstances surrounding 65-year-old McMullen's surprise resignation have become a point of interest in a lawsuit unrelated to his exit. Jewel — the songstress known for 90s hits like 'Foolish Games' and 'Hands' — has together with a business partner sued Kroger over the company's annual Wellness Festival, claiming they were central to launching the event and are owed damages over alleged contractual problems. 4 Former Kroger CEO Rodney McMullen (seen far left) has been ordered to reveal details of his exit from the company as part of an unrelated lawsuit brought by singer Jewel (seen second from left). Getty Images for The Wellness Experience by Kroger Their lawyers argued that delving into details of McMullen's resignation could be relevant to his credibility if he appears as a witness and could inform the court's view of what they describe as an 'allegedly corrupt corporate culture at Kroger.' McMullen's legal team pushed back, calling the questions 'completely irrelevant' and 'embarrassing,' but the judge ordered him to answer in writing. The Aug. 1 directive from Hamilton County Common Pleas Court Judge Christian Jenkins required McMullen to submit a sworn explanation by Aug. 8 that details the reason for his exit and identifies others involved, according to the court's order. It wasn't immediately clear whether McMullan had complied with the order. The Post has reached out to McMullen's lawyers for comment. Whether any written account from McMullen becomes public will depend on a later ruling about its relevance to the case. The judge can keep it under seal if he decides it matters to the lawsuit, or exclude it entirely if it does not. McMullen stepped down after more than a decade leading the Cincinnati-based grocery company, following what Kroger described as an investigation into his 'personal conduct.' 4 Rodney McMullen, former Kroger CEO, has been ordered to explain the reasons behind his sudden resignation. Bloomberg via Getty Images The company did not elaborate at the time. As part of his departure, McMullen forfeited all unvested equity and bonuses — $11 million in total, according to a filing with the Securities and Exchange Commission. McMullen earned $15.7 million in 2023. 'Usually a CEO has downside protection if they leave,' Eric Chaffee, a corporate law professor at Case Western Reserve University, told Fortune. 4 Jewel performed on stage in Cincinnati in 2021. Jewel and a business partner have sued Kroger over the company's annual Wellness Festival. Getty Images for The Wellness Experience by Kroger 'The fact that he was willing to give that up may provide some insight that what went on here was something he did not want revealed.' Chaffee told Fortune it is 'somewhat invasive' to probe a CEO's departure, but noted that Kroger itself linked the resignation to 'business ethics,' which can make the line of inquiry easier to justify. In civil litigation, he added, attorneys commonly try to 'test that individual's credibility… to figure out whether they behave in an ethical manner.' 4 Jewel shares the stage with then-Kroger CEO Rodney McMullen at the company's wellness festival in Cincinnati in 2021. Getty Images for The Wellness Experience by Kroger Chaffee pointed out that US courts strongly favor openness. There is, he said, a 'strong preference that the public has access to judicial proceedings — not just to be nosy, but because transparency makes for a fairer legal system.' The judge will ultimately decide how much of McMullen's account the public can see, if any. Kroger's sparse explanation left room for speculation when McMullen resigned, and the new order renews interest in what the company and its former leader have chosen not to disclose. 'There's a cloud that's left by his departure,' Chaffee told Fortune, 'but companies sometimes decide that's better than the damage that could come from disclosure.' For McMullen, silence may also be a rational choice. 'It might be something embarrassing to him personally, to a family member, or something that could have future repercussions for his career,' Chaffee told Fortune. Executive careers can hinge on public perception, and 'if you're a CEO and there are news reports out there that you've done something you shouldn't have, getting another top job can become very, very difficult,' he said. The Post has sought comment from Kroger, McMullen and Jewel.
