*

Mention of 'Donald Trump' by name said to draw opposition

*

Companies at odds over Ben & Jerry's ( UL ) social mission

*

Unilever ( UL ) plans to divest ice cream brands

(Adds governance expert's quote and context in paragraphs 8,9

and no immediate Ben & Jerry's ( UL ) response to comment request in

paragraph 4)

By Jessica DiNapoli and Jonathan Stempel

NEW YORK, Jan 24 (Reuters) - Ben & Jerry's ( UL ) ratcheted up

its censorship lawsuit against Unilever ( UL ) on Friday,

accusing its parent company of suppressing a social policy

statement the U.S. ice cream maker wanted to release because it

mentioned President Donald Trump.

The allegation came in an amended complaint filed in

Manhattan federal court, where Ben & Jerry's ( UL ) in November accused

Unilever ( UL ) of silencing its attempts to express support for

Palestinian refugees and end military aid to Israel, and

threatening to dismantle its independent board.

Ben & Jerry's ( UL ) wants a court order freeing the board to

continue oversight of its social mission, and requiring Unilever ( UL )

to honor its commitment to make $25 million of payments to

groups chosen by the ice cream company.

Unilever ( UL ) and Ben & Jerry's ( UL ) did not immediately respond to

requests for comment.

Both companies have been publicly at odds since 2021 when

Ben & Jerry's ( UL ) decided to stop selling Cherry Garcia, Chubby

Hubby and other ice cream flavors in the Israeli-occupied West

Bank because it was inconsistent with the company's values.

That led some investors to divest Unilever ( UL ) shares, and Ben &

Jerry's ( UL ) to sue its parent for selling its Israeli business to a

local licensee.

A settlement in 2022 required Unilever ( UL ) to respect Ben &

Jerry's ( UL ) independent board and social mission, as well as make

the $25 million of payments.

London-based Unilever ( UL ) since then announced plans to spin out

its ice cream business, including Ben & Jerry's ( UL ), to simplify its

product portfolio and cut costs. The lawsuit, however, could

complicate those plans.

"It doesn't help it, because anytime you have a cloud over

it, it makes it harder to either sell it or spin it out. It

affects folks' interpretation of its value," said Charles Elson,

a retired University of Delaware law professor and a corporate

governance expert.

DONALD TRUMP, NELSON PELTZ AND ELON MUSK

In the amended complaint, Ben & Jerry's ( UL ) said its management

and board, with input from Unilever's ( UL ) global head of litigation,

worked after Trump's election on a post to be released on

Inauguration Day, discussing hot-button issues such as abortion,

climate change, minimum wages and universal healthcare.

But on Jan. 18, two days before Trump's inauguration,

Unilever ( UL ) ice cream chief Peter ter Kulve "unilaterally barred

Ben & Jerry's ( UL ) from issuing the post because it specifically

mentioned 'Donald Trump,'" the complaint said.

Ben & Jerry's ( UL ) said ter Kulve appeared to base his decision

on intuition, while ignoring the company's history of

challenging the Trump administration.

It also said ter Kulve soon held a town hall meeting where

he touted how Unilever ( UL ) board member and activist investor Nelson

Peltz, a Trump supporter, had introduced the president to Elon

Musk, the Tesla founder and close Trump adviser.

The complaint said that according to ter Kulve, "despite

four decades of progressive social activism--and years of

challenging the Trump administration's policies

specifically--criticizing Trump was now too taboo for the brand

synonymous with 'Peace, Love, and Ice Cream.'"

Many companies in retail, banking and other sectors have

curtailed support this month for programs whose perceived social

impact has drawn opposition from Trump and his supporters.

RESISTANCE TO PAYMENTS

Ben & Jerry's ( UL ) was founded by Ben Cohen and Jerry Greenfield

in a renovated gas station in 1978, and kept its socially

conscious mission after Unilever ( UL ) bought it in 2000.

According to the amended complaint, Ben & Jerry's ( UL ) planned to

direct $5 million from Unilever ( UL ) to human rights groups, and $20

million over 10 years to support Palestinian almond farmers and

a fair trade almond supplier it had long used.

It said Unilever ( UL ) opposed the $5 million of payments because

it believed they would support "Palestinian human rights," and

has not made the second $2.5 million installment.

Ben & Jerry's ( UL ) also said ter Kulve resisted the $20 million

payment because he disliked the 2022 settlement and had not

heard of the almond supplier.

Unilever's ( UL ) dozens of other products include Dove soap,

Hellmann's mayonnaise, Knorr bouillon cubes, Surf detergent and

Vaseline petroleum jelly.

(Reporting by Jessica DiNapoli and Jonathan Stempel in New

York; Editing by David Gregorio and Muralikumar Anantharaman)