Judge narrows Ben & Jerry's 'silencing' lawsuit

A federal judge has significantly narrowed a lawsuit filed by Ben & Jerry's against its former parent company, Unilever, dismissing major claims that Unilever attempted to silence the ice cream maker's social activism and dismantle its board. US District Judge Kevin Castel in Manhattan threw out seven of the ten claims, along with part of an eighth, in the complaint brought by Ben & Jerry's and its independent directors. The judge stated that the dismissed claims primarily concerned the operational aspects of Ben & Jerry's. However, two claims that fully survived relate to alleged missed payments by Unilever. Magnum, the Amsterdam-based company that acquired Ben & Jerry's when it was spun off from Unilever last year, will now step in as the primary defendant in place of Unilever. The lawsuit stemmed from Ben & Jerry's decision in 2021 to cease selling ice cream in the Israeli-occupied West Bank, a move that began unraveling the relationship established when Unilever purchased the company in 2000. That acquisition had granted Ben & Jerry's uncommon freedoms, including an independent board and the ability to pursue its social mission. Ben & Jerry's had accused Unilever of violating their merger agreement by censoring its speech, including protests against the war in Gaza, and removing a CEO supportive of the company's activism. They also alleged Unilever failed to make payments totaling $2.5 million to Ben & Jerry's and $2 million to support Palestinian almond farmers, as stipulated in a 2022 settlement regarding trademark rights in Israel. Unilever denied the censorship allegations, stating the former CEO resigned voluntarily. Judge Castel ruled that the merger agreement did not grant Ben & Jerry's directors or its foundation the right to sue on behalf of the company regarding director appointments or removals, though directors may challenge new board eligibility requirements. Magnum welcomed the decision, asserting the Ben & Jerry's brand is thriving.

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Magnum said that it welcomed Mr Castel's decision, which it said significantly narrowed the case, and that the Ben & Jerry's brand is thriving.