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A federal judge on Friday dismissed major portions of a Ben & Jerry's lawsuit accusing its former parent Unilever of trying to silence the ice cream maker's social activism, dismantle its board and stop funding its namesake foundation.
A federal judge has dismissed major portions of a Ben & Jerry's lawsuit against Unilever, its former parent company. The lawsuit claimed Unilever was attempting to silence Ben & Jerry's social activism and dismantle its board. The judge ruled that Unilever's decision to stop funding the Ben & Jerry's Foundation was within its contractual rights. The lawsuit was filed in July 2022 after Unilever sold Ben & Jerry's Israeli business to a local company, which led to a dispute over the ice cream maker's social activism.
This decision could impact the prices you pay for Ben & Jerry's products. If Unilever is successful in silencing Ben & Jerry's social activism, the company may be less inclined to invest in social causes, potentially leading to cost savings that could be passed on to consumers. However, this could also lead to a loss of brand loyalty among customers who value Ben & Jerry's commitment to social causes.
This dispute is part of a larger trend of companies struggling to balance their business interests with social activism. Ben & Jerry's has been a leader in social activism since its founding, and its sale to Unilever in 2000 raised concerns among fans of the brand. Unilever has since faced criticism for its handling of Ben & Jerry's social activism, including a 2021 decision to stop selling Ben & Jerry's products in the West Bank.
The next key date to watch is the upcoming trial, which is expected to take place in the coming months. However, what's less well-known is that Ben & Jerry's has a unique governance structure, with an independent board that is designed to protect the company's social mission. This structure could play a key role in the trial, as Ben & Jerry's argues that Unilever is attempting to undermine its independence.
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