In its suit, Ben & Jerry's said that its brand is"synonymous with social activism" and that as part of its deal to be acquired by Unilever in 2000, it had reserved the"primary responsibility for safeguarding the integrity" of the Ben & Jerry's brand through its independent board.
It said that Unilever had publicly recognized the brand's right to make decisions about its social mission. But then last week, Ben & Jerry's said Unilever"abruptly reversed course."that it sold the Israeli branch of its Ben & Jerry's business to American Quality Products, which licenses the ice cream products in Israel. American Quality said it would continue selling Ben & Jerry's under Hebrew and Arabic names throughout Israel and its occupied territories.
Despite the right of Ben & Jerry's independent board to make decisions about the brand's social mission, Unilever said in announcing the sale that it had the right to enter into the agreement because it had reserved primary responsibility for financial and operational decisions. After Unilever announced the sale, Ben & Jerry's said in its lawsuit that its board held a special meeting on Friday and voted to sue over the decision.
In an interview with CNBC after last week's move by Unilever the Israeli licensor, Avi Zinger of American Quality Products, said any potential lawsuit would be"between Unilever and Ben & Jerry's. I already have a deal."