Jerry Greenfield resigned after 47 years, as Ben Cohen and other founders press a legal fight over Ben & Jerry's independent board and its role following ownership changes.
The dispute traces to the 2000 sale of Ben & Jerry's to Unilever, when the company secured a commitment that it would retain an independent board to protect its social mission, as reported by FoodOnline and the New York Times.
By January 1 this year Magnum, the ice cream conglomerate spun out of Unilever, had removed all independent directors except for one Unilever-appointed director and the chief executive, Dairy Reporter reported, and the independent board sued alleging the move violated the original merger agreement.
Magnum has countered that some directors became "ineligible" to serve because of term limits or alleged misconduct, framing the changes as compliance rather than removal, according to reporting cited in the articles provided.
The Ben & Jerry's Foundation won a court ruling allowing it to join the independent board's lawsuit after Magnum stopped providing it with approved funding, Vermont Business Magazine reported, and Foundation president Liz Bankowski said the dispute is about more than a contract.
Founder Ben Cohen told the New York Times "We're turning up the heat" and has asked Magnum to sell Ben & Jerry's to a values-aligned investor group, while threatening a boycott of Magnum products including Breyers, Klondike and Talenti if it does not comply.
Market Reaction Consequences And Wider Questions
Magnum shares were trading at a 52-week low heading into the company’s first shareholder meeting, and the stock had fallen roughly 25 percent from a February high, the reporting noted, while some European traders targeted the company for short selling.
More than 130,000 people signed a petition requesting that Magnum sell Ben & Jerry's to values-aligned investors, and former Ben & Jerry's CEO David Stever was named CEO of Jeni's Splendid Ice Creams, as the articles reported.
The case raises a broader question about the enforceability of deal-term promises when ownership changes, and M&A expert Farzad Mukhi told the New York Times he could not think of any similar cases.
Dairy Reporter published a governance timeline showing the independent board's authority to control its composition and to protect the brand's mission under the original merger agreement, even after an ownership change.
Reporting also noted examples meant to challenge the idea that purpose-driven brands are poor business, citing Fortune's figures on Dr. Bronner's growth from $4 million in 1998 to $250 million in 2025, and Patagonia's sales growth and charitable contributions, as reported by the same outlet.
Separately, the former board chair filed a defamation lawsuit in California, and the court will ultimately determine whether Magnum's actions breached the 2000 merger terms, according to the coverage provided.
