Ben & Jerry’s Lawsuit Against Unilever: Firing of CEO Sparks Legal Battle
Ben & Jerry’s, the famed ice cream brand renowned for its commitment to social issues, has filed a lawsuit against its parent company, Unilever, regarding the recent dismissal of CEO David Stever.
The Lawsuit: Key Details
The lawsuit, submitted this week, asserts that Unilever, based in London, notified Ben & Jerry’s board on March 3 of Stever’s termination. The ice cream company claims that this action breaches their merger agreement, which mandates that any decision regarding the CEO’s removal must include consultation with an advisory committee from the Ben & Jerry’s board.
Background of the Merger
Unilever acquired Ben & Jerry’s in 1998 for $326 million, with the intention of helping the socially-conscious ice cream company broaden its philanthropic endeavors. However, the relationship appears to have soured in more recent years.
In 2021, Ben & Jerry’s took a stand by announcing its decision to halt sales in Israeli settlements located in the occupied West Bank and parts of East Jerusalem. Following this move, Unilever sold its Israeli operations to a local partner who commenced selling Ben & Jerry’s products under their Hebrew and Arabic branding throughout Israel and the West Bank.
Previous Legal Action
Prior to the recent lawsuit, in November, Ben & Jerry’s had already taken legal action against Unilever in federal court in New York. This previous lawsuit accused Unilever of restricting Ben & Jerry’s ability to publicly express its support for Palestinians amid escalating tensions due to the Gaza War.
Ben & Jerry’s also claimed that Unilever prevented them from releasing a social media message identifying key issues of concern during the anticipated second term of President Donald Trump, which included topics such as minimum wage, universal healthcare, abortion rights, and climate change.
Unilever’s Response and Future Plans
In response to the initial lawsuit, Unilever had firmly rejected Ben & Jerry’s claims and expressed its intention to vigorously defend its position. As part of a strategic reorganization plan, Unilever has announced plans to spin off its ice cream business, including Ben & Jerry’s, by the end of 2025.
Unilever also manages well-known consumer brands across various sectors, including Dove personal care products and Hellmann’s mayonnaise.
Looking Ahead
As this legal conflict unfolds, it remains to be seen how both companies will navigate this turbulent history and what implications it will have on their future operations and brand identities.
