Ben & Jerry’s is suing parent company Unilever (NYSE:UL) to stop the sale of its Israeli business to a local licensee, a move the consumer products giant said would keep the ice cream products available in Israel and its occupied territories.
Ben & Jerry’s said in a lawsuit filed in federal court in New York Tuesday that Unilever’s decision was made without the approval of its independent board, which has the primary responsibility for safeguarding the integrity of its brand’s name.
A judge on Tuesday denied Ben & Jerry’s application for a temporary restraining order but ordered Unilever to show cause by July 14 for why a preliminary injunction should not be issued.
In a statement, Unilever said that “the deal has already closed” and that it does not comment on pending litigation. A Ben & Jerry’s representative did not respond to a request for comment.
The suit marks the latest development in a controversy that was set off last year when Ben & Jerry’s said it would stop sales in the West Bank territory occupied by Israel since the Six-Day war in 1967.
Israel’s government sees the occupied territories as part of its economy and any efforts to boycott business in the areas are seen as applying to the country. Stopping sales of the ice cream in the occupied territories would have ended sales throughout Israel.
UL shares gained 44 cents, or 1%, to $46.28.
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