Ben & Jerry's vs. Unilever: Ice Cream Wars Over Social Activism

Ben & Jerry's has filed a lawsuit against parent company Unilever, accusing it of silencing attempts to support Palestinian refugees and threatening its board. The case highlights ongoing tensions as Unilever plans a spin-out of its ice cream business. The lawsuit was filed in New York federal court.

In a pivotal legal battle, Ben & Jerry's has initiated a lawsuit against its parent company, Unilever, alleging that it has stifled the ice cream brand's efforts to support Palestinian refugees. The lawsuit, lodged in a New York federal court, claims Unilever has threatened to dismantle Ben & Jerry's board and take legal action against its members.

Tensions have been brewing since Ben & Jerry's announced in 2021 that it would cease sales in the Israeli-occupied West Bank, citing inconsistency with its values. This move prompted some investors to divest from Unilever, escalating the conflict. The latest lawsuit accuses Unilever of breaching a confidential 2022 settlement designed to respect Ben & Jerry's social mission.

As Unilever plans to spin off its ice cream business, likely impacting its valuation, corporate governance experts suggest the outcome could influence potential buyers. The lawsuit highlights Ben & Jerry's attempts to voice support for peace, which Unilever allegedly blocked. Both companies remain tight-lipped, citing ongoing litigation.

(With inputs from agencies.)