SAN DIEGO–(BUSINESS WIRE)–The Class: law firm specializing in shareholder rights Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of all persons and entities who purchased or otherwise acquired Unilever (NYSE: UL) American Depository Receipts (ADR) on September 2, 2020 and July 21, 2021, for violation of the Securities Exchange Act of 1934. Unilever is one of the largest consumer goods companies in the world.
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What this case is about: Unilever plc (UL) failed to disclose its resolution to end sales of its ice cream in the ‘Occupied Palestinian Territory’ and the risks associated with the board’s decision
According to the complaint, in 2000 Ben & Jerry’s sold the company to Unilever for $326 million. In July 2020, Ben & Jerry’s Independent Board of Directors passed a resolution to end sales of Ben & Jerry’s products in areas that the Ben & Jerry’s Board of Directors considers Palestinian territories illegally occupied by Israel. However, the CEO of Ben & Jerry’s did not “operationalize” the resolution immediately.
On July 19, 2021, Unilever “operationalized” Ben & Jerry’s board resolution to boycott Israel. That day, Ben & Jerry’s announced that upon the expiration of the current licensing agreement under which its products had been distributed in Israel for decades, it would end the sale of its ice cream in the “Palestinian Territory”. occupied” but allegedly continues to sell its products in Israel. However, in a separate answer reported by BNC Newsthe Ben & Jerry’s board disputed that Ben & Jerry’s would remain in Israel and that Unilever had the authority to make such a promise.
The class action alleges that, throughout the Class Period, the defendants made false and misleading statements and failed to disclose that in July 2020, Ben & Jerry’s Board of Directors passed a resolution seeking to end sales of its ice cream in the “Occupied Palestinian Territory” as well as the risks associated with the council’s decision. Additionally, Unilever’s description of its legal risks was materially false and misleading, as Unilever acknowledged that compliance with all applicable laws and regulations was important, but failed to discuss Ben & Jerry’s boycott decision, which was at risk of taking adverse governmental action for violation of laws, decrees or resolutions. aimed at discouraging boycotts, divestments and sanctions against Israel adopted by 35 US states (“anti-BDS legislation”).
In response to the boycott, Texas and Florida announced they were reviewing Ben & Jerry’s action under state anti-BDS legislation, with Florida’s CFO saying in a letter to Ben & Jerry’s CEO that refusing to do business in Israel would result in Ben & Jerry’s being placed on the list of scrutinized companies that boycott Israel and Florida would then be prohibited from investing in Ben & Jerry’s or Unilever. On this news, the price of Unilever’s ADRs closed more than 5%.
Ultimately, the states of New York, New Jersey, Florida, Texas, Illinois, Colorado and Arizona announced their decision to divest their investments in Unilever’s pension funds in due to violations of their anti-BDS laws.
Next steps: If you acquired your ADR shares of Unilever plc between September 2, 2020 and July 21, 2021, you have until August 15, 2022, to ask the court to name you as the lead plaintiff in the class. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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