NEW YORK (Legal Newsline) - Robbins Geller is representing a Michigan public pension in shareholder litigation against Unilever.
The firm filed suit June 15 on behalf of the City of St. Clair Shores Police and Fire Retirement System over a drop in the consumer goods company's stock price. It alleges leadership at the company misled investors by not disclosing the truths regarding ice cream company Ben & Jerry's, which Unilever bought for $326 million in 2000.
The proposed class action seeks to represent everyone who bought a Unilever American Depositary Receipt between Sept. 2, 2020, and July 21, 2021.
In July 2020, Ben & Jerry's board passed a resolution to boycott Israel, apparently a part of the boycott, divestment and sanctions (BDS) movement against Israel. That decision took effect July 19, 2021.
Anti-BDS legislation has been passed in 35 states, the suit says.
"The consequences for a company violating Anti-BDS Legislation range from the company being barred from contracting with the state to having the state divest its investments in the boycotting company, thereby driving down the price of the company’s stock and, in the case of the company’s bonds, driving up the company’s borrowing costs," the suit says.
"Unilever thus had ample reason to conceal the B&J Board resolution and thereafter to mischaracterize it once Unilever’s hand-selected CEO finally 'operationalized' it."