Ben & Jerry’s takes legal action against moms and dad business Unilever over sale of Israeli company

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Ben & Jerry's sues parent company Unilever over sale of Israeli business

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A tub of Ben and Jerry’s ice cream, produced by Unilever Plc.

Chris Ratcliffe|Bloomberg|Getty Images

Ben & &(*************************************************** )is taking legal action against moms and dad business Unilever to stop the sale of its Israeli company to a regional licensee, a relocation the customer items giant stated would keep the ice cream items readily available in Israel and its occupied areas.

Ben & &(*************************************************** )stated in a claim submitted in federal court in New York Tuesday that Unilever’s choice was made without the approval of its independent board, which has the main obligation for protecting the stability of its brand name’s name.

A judge on Tuesday rejected Ben & &(*************************************************** )application for a short-term limiting order however purchased Unilever to justify by July 14 for why an initial injunction must not be provided.

Representatives for Unilever and Ben & &(*************************************************** )did not right away react to ask for remark.

The match marks the current advancement in a debate that was triggered in 2015 when Ben & &(*************************************************** )stated it would stop sales in the West Bank area inhabited by Israel because the Six Day war in 1967.

Israel’s federal government sees the occupied areas as part of its economy and any efforts to boycott company in the locations are viewed as using to the nation. Stopping sales of the ice cream in the occupied areas would have ended sales throughout Israel.

In its match, Ben & &(*************************************************** )stated that its brand name is “synonymous with social activism” which as part of its offer to be gotten by Unilever in 2000, it had actually scheduled the “primary responsibility for safeguarding the integrity” of the Ben & &(*************************************************** )brand name through its independent board.

It stated that Unilever had actually openly acknowledged the brand name’s right to make choices about its social objective. But then recently, Ben & &(*************************************************** )stated Unilever “abruptly reversed course.”

Unilever revealed recently that it offered the Israeli branch of its Ben & &(*************************************************** )company to American Quality Products, which certifies the ice cream items inIsrael American Quality stated it would continue offering Ben & &(*************************************************** )under Hebrew and Arabic names throughout Israel and its occupied areas.

Despite the right of Ben & &(*************************************************** )independent board to make choices about the brand name’s social objective, Unilever stated in revealing the sale that it can participate in the contract since it had actually scheduled main obligation for monetary and functional choices.

After Unilever revealed the sale, Ben & & Jerry’s stated in its suit that its board held an unique conference on Friday and voted to take legal action against over the choice.

In an interview with CNBC after last week’s relocation by Unilever the Israeli licensor, Avi Zinger of American Quality Products, stated any possible suit would be “between Unilever and Ben & Jerry’s. I already have a deal.”

— CNBC’s Candice Choi added to this report.