Kroger CEO Resignation Probed in Jewel Lawsuit Over Alleged Corporate Misconduct

Rodney McMullen, the former CEO of Kroger Co., stepped down in March under circumstances described as “personal conduct” by the Cincinnati-based grocery giant. His resignation came after an internal investigation, and he forfeited $11 million in unvested equity and bonuses, according to an SEC filing [1]. The abrupt exit has drawn scrutiny, particularly as a separate lawsuit brought by singer Jewel and one of her business partners has led to a court order compelling McMullen to provide a written account of his resignation [1].

The litigation against Kroger centers on its annual Wellness Festival, which the plaintiffs claim they were instrumental in launching. They allege breach of contract and seek damages. Jewel’s legal team has argued that questioning McMullen about his resignation is relevant to his credibility as a trial witness and could offer insight into Kroger’s “allegedly corrupt corporate culture” [1]. The court agreed in part, ordering McMullen to submit a written explanation by August 8, including the names of those involved in his decision to leave [1].

McMullen’s attorneys have pushed back, calling the request “completely irrelevant” and “embarrassing,” according to court documents [1]. However, Hamilton County Common Pleas Court Judge Christian Jenkins ruled that the information could be relevant to the lawsuit. The final outcome—whether the explanation is entered into the record or sealed—remains uncertain [1].

Legal experts have weighed in on the unusual nature of the case. Eric Chaffee, a corporate law professor at Case Western Reserve University, noted that while prying into a CEO’s personal exit is “somewhat invasive,” the court could justify it given Kroger’s own reference to “business ethics” in explaining the resignation [1]. He added that such scrutiny is a common legal tactic to test witness credibility, especially in high-stakes cases [1].

For Kroger, the decision to keep the details of McMullen’s resignation private may be a calculated move to avoid damaging its public image or triggering regulatory or shareholder backlash [1]. Chaffee acknowledged that companies often choose to let “a cloud hang” rather than risk greater reputational damage by disclosing sensitive information [1].

McMullen himself could have personal reasons for maintaining silence. Chaffee speculated that the resignation may involve something embarrassing—whether to himself, his family, or his future career prospects—particularly if it involved unethical behavior [1]. A CEO’s reputation is closely tied to future employment opportunities, and if negative reports have already emerged, that could limit his options [1].

Although the case is unlikely to establish a broad legal precedent, it highlights the strategic use of discovery in litigation. By seeking damaging information about Kroger’s internal practices through McMullen’s resignation, the plaintiffs are applying pressure that could encourage a settlement [1].

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[1] Kroger’s CEO mysteriously resigned. An unrelated lawsuit involving Jewel could reveal why. (https://fortune.com/2025/08/13/kroger-ceo-rodney-mcmullen-resignation-lawsuit-jewel/)