Unilever, which owns Ben & Jerry's, plans to list its demerged ice cream business on the Amsterdam, London and New York stock exchanges
Unilever argued that Ben & Jerry's social advocacy had become too controversial, threatening the reputation and safety of both companies and their employees. AFP

Ben & Jerry's has accused its parent company, Unilever, of removing CEO Dave Stever due to his support for the ice cream company's stance on social causes, according to an amended complaint filed in Manhattan federal court on Tuesday night.

The lawsuit claims that Unilever's actions violate an agreement made in 2000 when the company acquired the American ice cream manufacturer. Based on the agreement, any decision regarding the removal of a CEO must involve consultation with an advisory committee from Ben & Jerry's board, Reuters reported.

The complaint further alleges that Unilever had previously pressured company staff to comply with efforts to silence the ice cream company's social mission. The controversy began when Unilever notified Ben & Jerry's on March 3 that it was removing Stever as CEO.

Stever, who took over as chief executive in May 2023, had been with the Vermont-based company since 1988.

In November 2024, Ben & Jerry's filed a lawsuit against Unilever, accusing the multinational of attempting to dismantle its board and curtail the company's ability to advocate for social issues.

Ben & Jerry's is known for its progressive stance on social and political issues. Over the years, the company has supported movements like defunding the police, protested the war in Gaza, and criticized President Donald Trump's policies. Last month, Ben & Jerry's accused Unilever of blocking it from publicly criticizing Trump, citing a "new dynamic" that allegedly limited the company's freedom to speak out.

Unilever Responds

Unilever responded to the accusations on Wednesday, asking the court to dismiss Ben & Jerry's earlier lawsuit. While Unilever acknowledged Ben & Jerry's social activism, it argued that the company's positions had become too controversial, posing risks to the employees and reputation of both companies.

In its filing, Unilever claimed that it had offered to work with Ben & Jerry's board on a statement that focused on "substantive issues" without personal attacks on Trump, but that the board refused to collaborate on what it considered "reasonable and prudent" calls for balance.

Unilever's response did not directly address the amended complaint or Stever's job status. The company expressed disappointment that discussions regarding Stever's removal had been made public.

"Regrettably, despite repeated attempts to engage the board and follow the correct process, we are disappointed that the confidentiality of an employee career conversation has been made public," Associated Press cited Unilever as saying.

Tensions After Unilever Acquired Ben & Jerry's

When Unilever acquired Ben & Jerry's for $326 million in 2000, it promised to support the ice cream maker's social mission. However, tensions have arisen over the years.

In 2021, Ben & Jerry's announced it would stop selling ice cream in Israeli settlements in the occupied West Bank and East Jerusalem, a decision that led to further strain with Unilever. Later, Unilever sold its Israeli business to a local company that continued to sell Ben & Jerry's products in Israel and the West Bank.

Unilever has also disclosed plans to spin off its ice cream business, including Ben & Jerry's, Breyers, Magnum, and other brands, by the end of 2025 as part of a broader restructuring.