Ice cream firm CoolBrands is facing a lawsuit that has been filed in the Supreme Court of the State of New York against it and certain of its subsidiaries and employees by Americana Foods Corporation in relation to Americana Foods LP.

CoolBrands indirectly owns a 50.1% interest in Americana Foods LP, a manufacturer and supplier of packaged ice cream, frozen yogurt and other frozen dessert products, while 49.9% owner Americana Foods Corporation is seeking monetary damages, certain declaratory orders and injunctive relief based on an alleged erosion of the value of its investment.

CoolBrands and its directors during July 2004 have been named as defendants in the lawsuit.

The plaintiffs allege that their broker made unauthorised purchases on their behalf of an unspecified number of CoolBrands shares, and that the actions of their broker and CoolBrands and its directors contributed to their loss.

CoolBrands said it intends to vigorously defend the two lawsuits.

In a separate announcement, CoolBrands International subsidiary Eskimo Pie Corporation has closed the sale of its Value America flavours and ingredients division for approximately US$9m.

The company said that its unit, which manufactures and sells flavours, chocolate coatings, fudge sauces, powders for chocolate milk, eggnog bases and other ingredients, has been sold to a leading inventor and marketer of specialty flavours for the ice cream industry.