Tualatin, OR — The Campbell Soup acquisition of Pacific Foods is in question as a legal battle has ensued following the death of Ed Lynch, co-founder of the organic foods company.
The suit was filed by Ed Lynch’s estate. Michael Lynch, one of Ed Lynch’s four children, is acting as the plaintiff for the case. The lawsuit claims that surviving co-founder (Ed Lynch’s son-in-law) severely reduced Ed Lynch’s 43% share of the company following his passing. The lawsuit states the estate is owed more than $250 million.
This lawsuit has thrown a wrench into Campbell Food Co.’s recent move to buy Pacific Foods in an attempt to increase sales and appeal to consumers with the recent rise in popularity of natural foods.
Representatives from Campbell Food Co. said they have told Pacific Foods that the company has 60 days to resolve problems arising from the suit if the $700 million deal is to be closed. After that period, Campbell “has the option to extend the cure period or terminate the agreement,” the company said.