Judge dismisses seven claims in Ben & Jerry’s lawsuit as Magnum replaces Unilever

A federal judge dismissed seven claims and part of an eighth in a 10-count lawsuit brought by Ben & Jerry’s and several independent directors against Unilever over alleged censorship, board interference, withheld funding and missed payments. U.S. District Judge Kevin Castel in Manhattan ruled that Magnum Ice Cream Company, which has owned Ben & Jerry’s since its separation from Unilever last year, will replace Unilever as the principal defendant. The dismissed claims largely concerned Ben & Jerry’s operations and governance, while two claims over alleged missed payments survived in full; part of a challenge to new eligibility requirements for independent board directors may also proceed. Ben & Jerry’s alleged that Unilever breached the 2000 acquisition agreement, which preserved an independent board and the brand’s social and charitable mission, and violated a 2022 settlement by failing to pay $2.5 million to Ben & Jerry’s and $2 million for Palestinian almond farmers. Castel ruled that the 2000 agreement did not give the independent directors or the Ben & Jerry’s Foundation the right to sue on the company’s behalf, although directors could pursue the payment claims in their own capacity. Magnum welcomed the ruling, saying it substantially narrowed the case and that the brand continued to perform well. The dispute intensified after Ben & Jerry’s stopped selling products in the Israeli-occupied West Bank in 2021.

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