Ben & Jerry’s Censorship Lawsuit Narrows After Judge’s Ruling

According to U.S. District Judge Kevin Castel in Manhattan, a federal court dismissed seven claims and part of an eighth in a 10-count lawsuit filed by Ben & Jerry’s against its former parent company, Unilever. The Vermont-based ice cream maker alleged that Unilever attempted to suppress its social activism, dismantle its board, and stop funding its namesake foundation, though the recent legal ruling significantly narrows the dispute.

Magnum Steps In as Primary Defendant Following Unilever Spin-Off

Under the court ruling, Magnum takes Unilever’s place as the primary defendant in the ongoing litigation, according to court proceedings. Magnum, an Amsterdam-based company, acquired ownership of Ben & Jerry’s when the ice cream brand was spun off from Unilever last year. Magnum lawyers welcomed the decision by Judge Castel, noting through public statements that the case is now significantly narrowed and that the Ben & Jerry’s brand is thriving alongside other popular products like Breyers, Klondike, and Wall’s.

Censorship and Missed Payments Allegations in the Spotlight

Compared to standard corporate takeovers, the legal dispute fundamentally roots itself in unique protections secured when Unilever initially acquired Ben & Jerry’s back in 2000, which provided the ice cream maker with rare autonomy—including a standalone board and the ongoing right to pursue philanthropic work and social missions established by founders Jerry Greenfield and Ben Cohen during its 1978 launch. Court records indicate that tensions began to surface in 2021 when Ben & Jerry’s chose to halt ice cream sales within the Israeli-occupied West Bank. Ben & Jerry’s accused Unilever of violating the 2000 merger agreement by censoring its speech, which has included protests against the war in Gaza, and ousting a chief executive who supported the company’s social activism. Efforts to silence upcoming commentary targeting US President Donald Trump at the start of his second term in the White House were likewise cited as part of the alleged censorship. Unilever denied censoring Ben & Jerry’s and said the former chief executive voluntarily resigned.

Did you know? Set up during the 2000 acquisition by Unilever, extraordinary and rare safeguards allowed the ice cream brand to maintain an autonomous board along with the freedom to advance charitable efforts and social initiatives stemming back to its 1978 establishment by Jerry Greenfield and Ben Cohen.

Surviving Claims Focus on Unpaid Settlement Funds

While the Ben & Jerry’s Foundation and Class I directors lacked the explicit authority under the merger’s literal terms to litigate corporate operational matters—such as the designation and dismissal of board members—causing most of those counts to be thrown out, a pair of allegations managed to remain fully intact. According to court documents, these surviving claims relate to missed payments by Unilever. Ben & Jerry’s claimed that Unilever breached a 2022 agreement regarding the disposition of Israeli trademark rights by neglecting to transfer $2.5 million to Ben & Jerry’s alongside $2 million designated for Palestinian almond growers. Judge Castel said directors could sue over the missed payments on their own behalf, not on Ben & Jerry’s behalf, while Unilever and Magnum agreed that claims over the missed payments could proceed for now.

Frequently Asked Questions

What did the federal judge decide in the Ben & Jerry’s lawsuit against Unilever?

U.S. District Judge Kevin Castel dismissed seven claims and part of an eighth in a 10-count complaint, narrowing the lawsuit significantly while allowing claims over missed payments to move forward.

Who is the primary defendant in the lawsuit now?

Taking over Unilever’s position as the main defendant in the lawsuit is Magnum, the Amsterdam-based enterprise that assumed control of Ben & Jerry’s following last year’s corporate spin-off.

What specific financial claims survived the dismissal?

Two claims that survived in full relate to missed payments by Unilever, including failing to pay $2.5 million to Ben & Jerry’s and $2 million to support Palestinian almond farmers under a 2022 settlement.

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Photo: reuters.com

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