Ben & Jerry's cites investor Peltz's growing influence over parent company Unilever

By Jessica DiNapoli

NEW YORK (Reuters) -Ice cream maker Ben & Jerry's said late on Friday that billionaire activist investor Nelson Peltz, who is on its parent company Unilever's board, has increased his influence over the consumer goods conglomerate, including on political issues.

Unilever and the unit have been locked in a bitter legal dispute since last year over allegations that the parent is muzzling it, hurting its ability to carry out its social mission. The Vermont-based frozen dessert manufacturer made the new claims in response to Unilever's attempts last week to have the case thrown out.

In a court filing, Ben & Jerry's said Unilever's edits to its social media posts, a key issue in its lawsuit against the London-based company, "mirror the political views of Mr. Peltz," who backed U.S. President Donald Trump in his election campaign last year. His increasing influence could signal broader change at Unilever, a corporate leader in environmental, social and governance policies (ESG) that Trump opposes.

The maker of Cherry Garcia and other flavors was founded by counterculture members Ben Cohen and Jerry Greenfield, though the two are no longer involved in day-to-day operations. The company has claimed that Unilever has censored it on topics ranging from Trump's immigration policies to the war in Gaza.

Ben & Jerry's said in the filing that Unilever threatened to eliminate its independent board and sue its members individually if it did not withdraw its proposal that the British charity Medical Aid for Palestinians receive donations from the corporate parent.

Unilever said the charity was unapologetically anti-Israel and that a donation to it could threaten Unilever and Ben & Jerry's with possible sanctions, according to the filing.

The filing states that Unilever relented on its position after its assessment of Medical Aid for Palestinians was discredited through various actions, including the head of the charity, Baroness Patricia Morris, saying its position was "unreasonable and unconscionable."

Ben & Jerry's also said Unilever tasked one of its executives with persuading the company's founders to take its side in the dispute.

Unilever, Ben & Jerry's, Peltz and Medical Aid for Palestinians did not immediately return a request for comment.

Unilever has been saying its brands such as Ben & Jerry's are on a global mission to do good.

Unilever's ice cream business, including Ben & Jerry's, is set to operate on a standalone basis starting July 1.

The case is Ben & Jerry's Homemade Inc v Unilever et al, U.S. District Court, Southern District of New York, No. 24-08641.

(Reporting by Jessica DiNapoli in New York; Editing by Richard Chang)