Ben & Jerry's Sues Parent Company Unilever Over Alleged Gaza Protest Censorship

Vermont-based ice cream manufacturer Ben & Jerry’s, an independent subsidiary of Unilever plc (NYSE:UL), has a long history of corporate activism. Its latest round has brought it into conflict with its own parent company.

What Happened: On Wednesday, Ben & Jerry’s filed a contract lawsuit against Unilever in the Southern District of New York. The federal lawsuit alleges that Unilever breached Ben & Jerry’s autonomy over social justice activism, specifically its various statements in support of a cease-fire between the Israeli government and Hamas in the ongoing war. Ben & Jerry’s and Unilever hold agreements to allow the brand's independent board to make social justice activism decisions.

Unilever has not yet filed a response, but a spokesperson reacted to Ben & Jerry’s lawsuit in an email to Benzinga.

“Our heart goes out to all victims of the tragic events in the Middle East,” the spokesperson said. “We reject the claims made by B&J's social mission board, and we will defend our case very strongly. We would not comment further on this legal matter."

The Burlington-based company’s complaint alleges that Unilever “silenced” efforts to speak out in support of Palestine. Following Ben & Jerry’s statement in 2023 in support of an Israel-Palestinian cease-fire, the London, England-based parent company allegedly threatened to dissolve its independent board and sue board members.

In addition, Unilever blocked Ben & Jerry’s donations to Jewish Voice for Peace and the Council on American-Islamic Relations, two organizations in support of Palestinians, the ice cream brand alleges.

Ben & Jerry’s previously sued Unilever in 2022. The ice cream manufacturer had announced a cessation of sales in the occupied West Bank and East Jerusalem in protest of Israeli policy. Unilever subsequently sold Ben & Jerry’s Israel license, something Ben & Jerry’s said was done without permission.

Why It Matters: It is considered rare for a subsidiary to file a lawsuit against its own parent company.

According to the Wall Street Journal, Unilever has considered selling off its ice cream brands, including Ben & Jerry’s, Breyer’s and Popsicle. Unilever acquired Ben & Jerry’s in 2000.

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