US-based ice cream maker Ben & Jerry’s has sued its own parent firm Unilever over the firing of the former’s CEO David Stever. Ben & Jerry’s claimed that Unilever violated its merger agreement with the ouster for the brand’s political activism.
Stever, who had joined the company as a tour guide in 1988, was fired after leading the company for almost two years.
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In a complaint filed on Tuesday in New York, Ben & Jerry’s stated that the UK-based conglomerate, that owns brands like Dove, wanted to stop Stever from making political statements.
The Guardian reported Ben & Jerry’s Chairperson of the board Anuradha Mittal as saying, “Dave has courageously advanced the company’s social mission and values, has continued to drive innovation in its super premium product range, and has delivered strong financial results, far outpacing the rest of Unilever’s ice-cream business.”
The company claimed that as per the merger agreement between it and Unilever signed in 2000, Ben & Jerry’s interests are protected as Unilever is not allowed to remove its CEO without by board’s approval, which is what Unilever did.
The lawsuit said that Unilever’s motive for the removal of Stever was due to his “commitment to Ben & Jerry’s Social Mission and Essential Brand Integrity … rather than any genuine concerns regarding his performance history”, according to CNN.
In a statement given to CNN, Unilever said, “In line with the terms of the acquisition agreement, decisions on the appointment, compensation and removal of the Ben & Jerry’s CEO will be made by Unilever after good faith consultation and discussion with the B&J’s Independent Board… (W)e are disappointed that the confidentiality of an employee career conversation has been made public.”
The lawsuit is the latest development in a long-drawn dispute between the parent firm and its subsidiary. Ben & Jerry’s had accused last month that Unilever demanded it stop publicly criticising US President Donald Trump.
In November, the ice cream maker launched legal action against Unilever and accused the company of trying to block it from making public statements supporting Palestinian refugees.
Ben & Jerry’s, which was founded by Ben Cohen and Jerry Greenfield in 1978, was bought by the UK-based consumer goods group in 2000.
As part of the merger deal, an independent board was set up to protect the ice-cream brand’s mission and strong stance on social issues.
