Ben & Jerry's Board Reduced to Two Directors After Magnum's Misconduct Allegations

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Ben & Jerry's
Pints of Ben & Jerry’s ice cream are seen on a shelf at Ideal Fresh Market of Church Ave on March 19, 2024 in the Flatbush neighborhood of Brooklyn borough in New York City. Consumer goods company Unilever announced that it will be cutting 7,500 jobs and spinning off its division that makes ice cream, which includes Ben & Jerry’s, Cornetto and Magnum sweet treats, into a new company. The spinoff is expected to be completed by the end of 2025. Michael M. Santiago/Getty Images

Ben & Jerry's is facing a major shake-up as its board has been reduced from eight members to just two following allegations of misconduct by its former chair.

The turmoil comes amid the Vermont-based ice cream brand's ongoing legal battle with parent-company spin-off Magnum Ice Cream Company.

In a court filing dated January 20 in US District Court in New York, Magnum revealed that only Ben & Jerry's CEO and a Unilever-appointed director remain on the board.

The move follows the ousting of former Board Chair Anuradha Mittal in mid-December, as well as the departure of two long-serving directors after Magnum implemented nine-year term limits, Reuters reported.

Magnum accused Mittal of "serious misconduct that rendered her ineligible to serve on the board," citing an Ernst & Young audit of the Ben & Jerry's Foundation, a US non-profit funded by the brand, which raised concerns about conflicts of interest.

According to Magnum, the remaining independent directors did not agree to undergo compliance training, effectively leaving the board with just the two directors as of January 1.

Ben & Jerry's Foundation Caught in Board Dispute

Mittal responded with strong criticism, saying, "Magnum's midnight purge of independent directors who provide oversight authority and holding hostage charitable funds— all while they continue to conceal the audit report and scope of work — speak for themselves."

She has accused Magnum and Unilever of attempting to discredit her and weaken the board's authority.

According to US News, the Ben & Jerry's Foundation also issued a statement, calling itself "collateral damage" in the dispute.

Magnum claimed the foundation had made grants to organizations where trustees, including Mittal, held senior positions and received compensation or other benefits.

Despite the allegations, Magnum described the situation as "regrettable" and said it remains committed to supporting Ben & Jerry's staff.

"We look forward to the development of a refreshed Board with a majority of Independent Directors, led by an Independent Director," the company said.

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