*

Ben & Jerry's ( UL ) says investor Peltz is increasing influence

at

Unilever ( UL )

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Ben & Jerry's ( UL ) says Unilever ( UL ) threatened to eliminate board

over

donations to Palestinian charity

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Ice cream maker says Unilever ( UL ) tasked executive to get

founders

on parent company's side

By Jessica DiNapoli

NEW YORK, May 2 (Reuters) - Ice cream maker Ben &

Jerry's ( UL ) said late on Friday that billionaire activist investor

Nelson Peltz, who is on its parent company Unilever's ( UL )

board, has increased his influence over the consumer goods

conglomerate, including on political issues.

Unilever ( UL ) 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 ( UL ) attempts last week to have

the case thrown out.

In a court filing, Ben & Jerry's ( UL ) said Unilever's ( UL ) 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 ( UL ), 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 ( UL ) has censored it on topics

ranging from Trump's immigration policies to the war in Gaza.

Ben & Jerry's ( UL ) said in the filing that Unilever ( UL ) 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 ( UL ) said the charity was unapologetically anti-Israel

and that a donation to it could threaten Unilever ( UL ) and Ben &

Jerry's ( UL ) with possible sanctions, according to the filing.

The filing states that Unilever ( UL ) 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 ( UL ) also said Unilever ( UL ) tasked one of its

executives with persuading the company's founders to take its

side in the dispute.

Unilever ( UL ), Ben & Jerry's ( UL ), Peltz and Medical Aid for

Palestinians did not immediately return a request for comment.

Unilever ( UL ) has been saying its brands such as Ben & Jerry's ( UL )

are on a global mission to do good.

Unilever's ( UL ) ice cream business, including Ben & Jerry's ( UL ), is

set to operate on a standalone basis starting July 1.

The case is Ben & Jerry's Homemade Inc v Unilever ( UL ) et al,

U.S. District Court, Southern District of New York, No.

24-08641.