Ice cream company Ben & Jerry’s accused its parent company, Unilever, of breaching a merger agreement by removing its chief executive without board approval and firing their company’s CEO for the brand’s repeated public political comments on progressive issues, according to an amended complaint filed on Tuesday in New York.
Lawyers for Ben & Jerry’s said that rules allegedly breached by Unilever stemmed from its 2000 merger “protects Ben & Jerry’s interests by precluding the unilateral removal of its CEO.”
By “removing and replacing” CEO David Stever without allegedly following the proper procedures, which was said to be over the brand’s continued public political stances, the ice cream company claimed Unilever breached an agreement.
Ben & Jerry’s complained in the lawsuit that Stever was terminated by Unilever for his “commitment to Ben & Jerry’s Social Mission and Essential Brand Integrity … rather than any genuine concerns regarding his performance history.”
The ice cream company also claimed Unilever blocked the company from making posts related to detained pro-Palestinian activist Mahmoud Khalil, who is accused of spreading Hamas propaganda. The post reportedly included a link to a petition calling for Khalil to be released.
Unilever told American news site CNN that “In line with the terms of the acquisition agreement, decisions on the appointment, compensation and removal of the Ben & Jerry’s CEO will be made by Unilever after good faith consultation and discussion with the B&J’s Independent Board… (W)e are disappointed that the confidentiality of an employee career conversation has been made public.”
Troubles between Ben & Jerry's and Unilever
Ben & Jerry's said in a lawsuit filed in November claiming that parent company Unilever has silenced its attempts to express support for Palestinian refugees and threatened to dismantle its board and sue its members over the issue.
The lawsuit is the latest sign of the long-simmering tensions between Ben & Jerry's and consumer products maker Unilever. A rift erupted between the two in 2021 after Ben & Jerry's said it would stop selling its products in the West Bank because it was inconsistent with its values, leading some investors to divest Unilever shares.
The ice cream maker then sued Unilever for selling its business in Israel to its licensee there, which allowed marketing in the West Bank and Israel to continue. That lawsuit was settled in 2022.