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Blue Bell Execs’ Insurance Bid Denied In Listeria Outbreak

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By Lauren Castle (August 24, 2022, 7:47 PM EDT) — Blue Bell Creameries Inc. and its subsidiaries aren’t entitled to coverage from two insurance companies for their fight with shareholders over actions during a fatal 2015 listeria outbreak, a Texas federal judge has ruled.

In an order filed Monday in Texas’ Western District, U.S. District Judge Robert Pitman wrote Discover Property & Casualty Insurance Co. and Travelers Indemnity Co. of Connecticut are not required to cover the costs of Blue Bell’s defense. The judge said the 2015 policy doesn’t apply to the ice cream company’s executives because of the accusations that the leaders knew they were breaking their fiduciary duty to the…

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