Judge narrows Ben & Jerry's lawsuit against Unilever
A federal judge has dismissed major portions of a lawsuit filed by Ben & Jerry's against its former parent company Unilever, which alleged the consumer goods giant tried to silence the ice cream maker's social activism, dismantle its board, and stop funding its namesake foundation.
US District Judge Kevin Castel in Manhattan dismissed seven claims and part of an eighth in a 10-count complaint filed by Vermont-based Ben & Jerry's and various independent directors, according to a report by the New York Post. The dismissed claims relate primarily to how Ben & Jerry's operates, while two claims survived in full relating to missed payments by Unilever.
The lawsuit stemmed from a governance arrangement that dates back to Unilever's 2000 purchase of Ben & Jerry's, which preserved substantial and uncommon freedoms for the ice cream company, including an independent board and the ability to pursue a social mission and charitable work. Ben & Jerry's was founded in 1978 in Burlington, Vermont.
The relationship between Ben & Jerry's and Unilever began unraveling in 2021, when Ben & Jerry's decided to stop selling ice cream in the Israeli-occupied West Bank. The legal dispute escalated as Ben & Jerry's accused Unilever of violating the 2000 merger agreement by censoring its speech, which included protests against the war in Gaza, and ousting a chief executive who supported the company's social activism. The alleged censorship also included an effort to suppress planned criticism of President Trump as he began his second White House term.
Judge Castel said the merger agreement's 'plain meaning' did not afford Ben & Jerry's Class I directors and the Ben & Jerry's Foundation a right to sue on behalf of the company, including on the appointment and removal of directors. However, he said the directors could challenge new board eligibility requirements and could sue over missed payments on their own behalf.
Unilever denied censoring Ben & Jerry's and said the former chief executive voluntarily resigned. Unilever and Magnum, the Amsterdam-based company that has owned Ben & Jerry's since it was spun off from Unilever last year, agreed that claims over the missed payments could proceed for now, according to court papers.
New board appointments
Separately, Ben & Jerry's announced Wednesday it has appointed three new members to its board in a bid to restructure its governing panel, as reported by ESG Dive. The appointments follow a prolonged governance dispute with parent company Unilever and spinoff Magnum Ice Cream.
The ice cream maker named Nora Benavidez, Michael McAfee and Eva Schulte as independent directors, effective this month. The new appointees collectively bring decades of experience in environmental and social justice, civil rights, economic equity and free speech. Ben & Jerry's said the new directors will draw on that experience to challenge and inspire the company as it works to boost its three-part mission of balancing product quality, financial growth and social impact.
Ben & Jerry's has a unique governance structure designed to protect its long-term social mission. The company was founded in 1978 as a small ice cream scoop shop in Burlington, Vermont, and was acquired by British consumer goods giant Unilever in 2000. Last year, Unilever spun out its ice cream business into a separate company called The Magnum Ice Cream Company, which now owns Ben & Jerry's, Klondike, Talenti and its namesake Magnum, according to ESG Dive.
In recent years, Ben & Jerry's has clashed with Unilever and Magnum over political censorship and publicly accused its parent companies of censoring its social activism, ESG Dive reported. The brand previously said Unilever demanded it stop publicly criticizing President Donald Trump and tried to block it from making public statements advocating for a ceasefire in Gaza. The companies also disagreed last year on whether Unilever fired Ben & Jerry's CEO over his support for the brand's social mission.
Separate defamation case
Unilever and Magnum are separately seeking dismissal of a defamation lawsuit filed by Anuradha Mittal, who was ousted as chair of Ben & Jerry's independent board in December 2024, according to the New York Post. Mittal accused the companies of vilifying and discrediting her for supporting Palestinian rights.
Magnum said it welcomed Castel's decision, which it said significantly narrowed the case, and that the Ben & Jerry's brand is thriving. Lawyers for Ben & Jerry's independent directors and Unilever did not immediately respond to requests for comment.