Ben & Jerry's has filed a lawsuit against its parent company, Unilever, alleging the removal of its chief executive, David Stever, was conducted without necessary consultation. The legal action was initiated in the US District Court for the Southern District of New York. This move marks an escalation in the ongoing conflict between the ice cream brand and its parent company, centering around issues of governance and social advocacy.
The controversy began when Ben & Jerry's claimed that Unilever ousted David Stever without consulting its independent board, a requirement stipulated in their merger agreement. The agreement, established when Unilever acquired Ben & Jerry's in 2000, ensures that the brand retains control over its social mission. The board, tasked with safeguarding the company's values, was reportedly bypassed in this decision-making process.
In addition to the allegations concerning the CEO's removal, Ben & Jerry's has accused Unilever of attempting to suppress its social and political expressions. The company asserted that Unilever has tried to prevent it from voicing support for Palestinian refugees and demanded it cease criticism of US President Donald Trump. Tensions have intensified over the past year as Ben & Jerry's advocated for a ceasefire in Gaza and halted sales in the West Bank in 2021.
"Unilever has repeatedly threatened Ben & Jerry's personnel, including CEO David Stever, should they fail to comply with Unilever's efforts to silence the social mission." – Ben & Jerry's
David Stever, who began his career at Ben & Jerry's in 1988 as a tour guide, was appointed chief executive in 2023. His longstanding association with the company is now at stake due to these recent developments. Ben & Jerry's claims that Unilever's actions not only violate their merger agreement but also threaten the brand’s ability to uphold its commitment to social causes.
"It also said the decision to oust Mr Stever was made without any consultation, as required in the merger agreement between the two companies." – Ben & Jerry's
Unilever and Ben & Jerry's have had a fraught relationship since 2021 when tensions first surfaced over the ice cream maker’s decision to stop sales in the West Bank. The current lawsuit adds another layer to this complex dynamic, highlighting ongoing disagreements over corporate governance and social responsibility.