By Jessica DiNapoli

NEW YORK (Reuters) -Ice cream brand Ben & Jerry's said in a lawsuit filed Wednesday that parent company Unilever has silenced its attempts to express support for Palestinian refugees and threatened to dismantle its board and sue its members over the issue.

The lawsuit is the latest sign of the long-simmering tensions between Ben & Jerry's and consumer products maker Unilever, which is planning to spin out its ice cream business next year.

The spin-out would include the top-selling Vermont-based maker of Chubby Hubby, although experts on corporate governance said the brand's board, a centerpiece of the new lawsuit, could present challenges to the deal.

A rift first erupted between Ben & Jerry's and Unilever in 2021 after the ice cream maker said it would stop selling its products in the Israeli-occupied West Bank because it was inconsistent with its values, a move that led some investors to divest Unilever shares.

The ice cream maker then sued Unilever for selling its business in Israel to its licensee there, which allowed marketing in the West Bank and Israel to continue. That lawsuit was settled in 2022.

In its new lawsuit, Ben & Jerry's says that Unilever has breached the terms of the 2022 settlement, which has remained confidential. As part of the agreement, however, Unilever is required to "respect and acknowledge the Ben & Jerry's independent board's primary responsibility over Ben & Jerry's social mission," according to the lawsuit.

But, according to the lawsuit, "Ben & Jerry's has on four occasions attempted to publicly speak out in support of peace and human rights. Unilever has silenced each of these efforts."

In response to Reuters' story, Unilever said in an emailed statement: "Our heart goes out to all victims of the tragic events in the Middle East. We reject the claims made by B&J’s social mission board, and we will defend our case very strongly."

"We would not comment further on this legal matter," it added.

Ben & Jerry's said in an email: "We are confident that these issues will ultimately be resolved. Due to the ongoing nature of the litigation, we are unable to comment on the specifics."

The lawsuit was filed in New York federal court.

Minor Myers, a professor at the University of Connecticut School of Law, said the tension between Ben & Jerry's and Unilever would be top of mind in a deal, particularly if Unilever's ice cream brands are acquired by a private equity firm or competitor company.