Goya Foods CEO Ousted by Family-Run Board Amid Controversy and Lawsuits

Image credits: Ron Sachs/CNP for New York Post/Sipa/File

The recent ousting of Goya Foods CEO Bob Unanue by the company's family-run board has sparked controversy and lawsuits, with allegations of mismanagement and breaches of fiduciary duty. Unanue, a prominent supporter of President Donald Trump, had been at the helm of the company for nearly two decades and had led the largest Hispanic-owned food company in the country to historic success and growth. However, his time in charge has been marred by controversy, including a highly publicized incident in 2021 where the board voted to censure him over comments questioning the legitimacy of the 2020 election.

A lawsuit filed by Unanue's cousin and Goya executive Frankie Unanue alleges that Bob Unanue engaged in a "clandestine agreement" that permitted the "looting" of Goya and thereafter "colluded" with a long-time friend to "perpetrate and/or cover up the resulting damage to Goya." The lawsuit also claims that Unanue failed to supervise his friend and hand-picked head of the company's IT department, Suvajit Basu, which led to vulnerabilities in the IT structure, three full system shutdowns within a year, and millions of dollars of misused funds. Goya Foods has denied all allegations and stated that the decision to remove Unanue had nothing to do with his political leanings or work against child trafficking, but rather was a result of his alleged mismanagement of the company.

The inner workings of the nation's largest Hispanic-owned food company are rarely publicized due to the dynamics of the family-controlled company and the fact that the company is private, not publicly owned. However, the lawsuit has shed light on the company's internal struggles and the allegations of mismanagement and breaches of fiduciary duty. The company was founded in 1936 by Unanue's grandfather, Don Prudencio Unanue, and his wife Carolina, and the nine-member board is still made up entirely of Unanue family members. The company generates over $1.5 billion in annual revenue and has approximately 4,000 employees worldwide.

The lawsuit against Unanue alleges breach of fiduciary duty, among other counts, and seeks compensatory damages, punitive damages, and attorneys' fees. It also asks for a trial by jury. Unanue has denied all allegations and stated that he will continue to voice his support for the current administration's efforts to eliminate child trafficking. The controversy surrounding Unanue's ousting has sparked a heated debate, with some supporting his removal and others criticizing the board's decision. The outcome of the lawsuit and the future of Goya Foods remain uncertain, but one thing is clear: the company's internal struggles and allegations of mismanagement have sparked a crisis that will have far-reaching consequences.

In terms of the timeline of events, here is a list of key milestones: * 2021: The board votes to censure Unanue over comments questioning the legitimacy of the 2020 election. * 2024: Unanue speaks at the Republican National Convention in support of Trump. * February 2025: Frankie Unanue files a lawsuit against Bob Unanue, alleging breach of fiduciary duty and mismanagement. * February 2025: Goya Foods files a statement denying all allegations and stating that the decision to remove Unanue had nothing to do with his political leanings or work against child trafficking. * February 2025: Unanue announces his removal as CEO and states that he will continue to voice his support for the current administration's efforts to eliminate child trafficking.