Ben & Jerry's, the Vermont-based ice cream maker known for its social activism, filed a lawsuit against its parent company, Unilever, on Wednesday.
The legal action accuses Unilever of censoring the brand's efforts to support Palestinian refugees and threatening to dissolve its independent board. This development escalates the tension between the two companies, a dispute that has persisted since the start of the Gaza conflict.
Ben & Jerry's Accuses Unilever of Blocking Peace Efforts
The lawsuit alleges that Unilever blocked Ben & Jerry's from making public statements advocating for peace, a ceasefire, and safe passage for refugees in Gaza.
It also claims the parent company prevented Ben & Jerry's from supporting US student protests against civilian deaths in Gaza and from calling for an end to US military aid to Israel, the NY Times said.
Unilever, in response, has rejected the claims, stating it will defend itself "very strongly" against the accusations.
The dispute stems from Ben & Jerry's unique governance structure. When Unilever acquired the ice cream brand in 2000, it agreed to maintain an independent board overseeing Ben & Jerry's social mission.
This arrangement was meant to preserve the company's commitment to activism, a core value since its founding in 1978. However, Ben & Jerry's claims Unilever has violated this agreement, particularly regarding its advocacy on issues related to Palestinian refugees.
Ben & Jerry's Lawsuit Revives Dispute Over Israeli Sales, Social Activism
The lawsuit also revisits previous conflicts, including Ben & Jerry's 2021 decision to halt sales in Israeli-occupied territories, citing inconsistency with the company's values. That move triggered a backlash, affecting Unilever's sales and leading major US pension funds to divest from Unilever shares.
To address the fallout, Unilever sold Ben & Jerry's operations in Israel to a local partner, a decision that Ben & Jerry's contested in court, leading to a settlement in 2022.
In its latest lawsuit, Ben & Jerry's accuses Unilever of breaching the 2022 settlement, which required Unilever to respect the independent board's decisions.
According to Reuters, the ice cream maker alleges that Unilever blocked a $5 million donation to human rights organizations supporting Palestinian refugees, arguing that some groups were "too critical" of Israel.
This ongoing conflict raises questions about the future of Ben & Jerry's under Unilever's ownership. Unilever has announced plans to spin off its ice cream business by 2025, but experts believe the tension surrounding Ben & Jerry's activism could complicate any potential sale or restructuring.
Despite the legal battle, Ben & Jerry's remains committed to its social mission, stating confidence that the issues will ultimately be resolved. However, the outcome of the lawsuit will likely shape the future of corporate governance and activism for the brand.
