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New York (CNN) — Ben & Jerry’s is accusing its parent company Unilever of breaching its merger agreement by ousting the ice cream company’s CEO for the brand’s repeated public comments on progressive issues, removing its chief executive without the board’s approval.
It’s the latest escalation of an increasingly ugly dispute between the brand and its conglomerate owner that began in 2021.
In an amended complaint filed Tuesday in New York, lawyers for the ice cream brand said that rules stemming from its 2000 merger “protects Ben & Jerry’s interests by precluding the unilateral removal of its CEO,” but Unilever did just that — “removing and replacing” CEO David Stever by not following the proper protocols and said it was because of the brand’s continued comments on progressive issues.
The lawsuit said that Unilever’s motive for the removal of Stever was due to his “commitment to Ben & Jerry’s Social Mission and Essential Brand Integrity … rather than any genuine concerns regarding his performance history.”
In a statement, Unilever (UL) told CNN: “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.”
The UK company announced in March 2024 it was looking to sell Ben & Jerry’s and its other ice cream brands but it has not yet completed a deal.
Tuesday’s complaint is the latest in a string of them against Unilever for attempting to silence the ice cream brand on social media. In January, the company alleged that Unilever “unilaterally barred” a post referencing abortion, climate change and universal healthcare because it mentioned President Donald Trump.
Ben & Jerry’s says the behavior continued in recent weeks, alleging that Unilever blocked the company from making a post about Mahmoud Khalil, a Palestinian refugee whose green card was revoked over his involvement with demonstrations last year at Columbia University in New York, and remains in ICE custody.
The post on X would have included a link to the ACLU petitioning for his release, but wasn’t published and Unilever “provided no explanation for the censorship.”
Another post that was allegedly prohibited from being published was in celebration of Black History Month in February.
Ben & Jerry’s initial lawsuit, filed in November 2024, alleged Unilever silenced its attempts to publicly support Palestinian refugees and resolutions to end military aid to Israel, where the company had done business since 1987.
It also alleged that Unilever threatened to dismantle Ben & Jerry’s board and sue members because the company’s management and board planned to issue a statement calling for “peace” and a “permanent and immediate ceasefire.”
Stever, who’s been with the ice cream brand since 1988 and started as a tour guide, was appointed CEO in May 2023. It’s unclear what position he currently holds with the company.
Unilever is also undergoing a change in management, with its CEO stepping down a few weeks ago after a short stint in the position.
The-CNN-Wire
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