* Mittal says Unilever ( UL ) rankled by her support for

Palestinian rights

* Ben & Jerry's ( UL ) has battled Unilever ( UL ) since 2021

* Unilever ( UL ) not available for comment, Magnum calls claims

unfounded

(Recasts first paragraph; adds Magnum comment, details from

complaint, background, paragraphs 2-3, 6, 8, 10-14)

By Jonathan Stempel

March 26 (Reuters) - Unilever ( UL ) and its recently

spun-off Magnum ice cream unit were sued for

defamation on Thursday by Anuradha Mittal, who was ousted in

December as chair of Ben & Jerry's ( UL ) independent board, saying the

companies vilified and discredited her for supporting

Palestinian rights.

The lawsuit escalates a years-long dispute over what Ben &

Jerry's ( UL ) and its board say were Unilever's ( UL ) efforts to undermine

their autonomy and the brand's social mission, including by

removing former Ben & Jerry's Chief Executive Dave Stever.

Unilever ( UL ) did not immediately respond to requests for

comment. Magnum said in an email: "The claims are unfounded and

we are confident the court process will show this."

In a complaint filed in the Oakland, California, federal

court, Mittal said her support for Palestinian rights and a

ceasefire in Gaza "rankled" Unilever ( UL ), with the acrimony

escalating after Unilever ( UL ) announced the Magnum spinoff in March

2024.

She said the defamation included claims she engaged in

self-dealing, received improper benefits, diverted funds from

the nonprofit Ben & Jerry's Foundation, created a toxic work

environment, and was unfit to remain board chair following

internal investigations.

"Defendants achieved their goal of thoroughly humiliating

and discrediting Ms. Mittal," harming her reputation and causing

depression and chronic insomnia, the complaint said.

Unilever ( UL ) retained a 19.9% stake in Magnum following the

December spinoff.

FOUR-DECADE RELATIONSHIP UNRAVELED

Mittal is seeking unspecified compensatory and punitive

damages. She said Unilever ( UL ) and Magnum acted with "actual

malice," meaning they knew their statements were false or had

reckless disregard for their truth.

Raised in Kanpur, India, Mittal is the founder and executive

director of the Oakland Institute, a think tank focused on the

rights of farmers, forest dwellers, indigenous communities and

"pastoralists."

Ben & Jerry's ( UL ) has had a socially conscious mission since its

1978 founding by Ben Cohen and Jerry Greenfield, and was

acquired by Unilever ( UL ) in 2000.

The relationship began unraveling in 2021 when Ben & Jerry's ( UL )

said it would stop selling ice cream in the Israeli-occupied

West Bank.

Ben & Jerry's ( UL ) sued Unilever ( UL ) in November 2024 to stop alleged

efforts to dismantle its board and end its progressive social

activism, which has also included attempts to criticize U.S.

President Donald Trump.

That lawsuit remains pending, and the Ben & Jerry's

Foundation obtained court permission last week to join as a

plaintiff.

Magnum has called the litigation "regrettable" and said it

was committed to supporting Ben & Jerry's ( UL ).