SIOUX FALLS, S.D. -- ABC and a South Dakota meat producer announced a settlement Wednesday in a libel lawsuit against the American network over its reports on a lean, finely textured beef product that critics dubbed "pink slime."
The terms of the settlement are confidential. Dakota Dunes-based Beef Products Inc. sued ABC in 2012, saying its coverage misled consumers into believing the product is unsafe, is not beef and isn't nutritious. ABC spokesman Julie Townsend said in a Wednesday statement that the network throughout the case has maintained that its reports accurately presented the facts and views of knowledgeable people about the product.
"Although we have concluded that continued litigation of this case is not in the Company's interests, we remain committed to the vigorous pursuit of truth and the consumer's right to know about the products they purchase," Townsend said.
Beef Products Inc. and its family owners said in a statement that the lawsuit was difficult but necessary to rectify the harm suffered as a result of ABC's reports on lean, finely textured beef. The coverage emphasized that the product at the time was present in 70 percent of the ground beef sold in supermarkets, but wasn't labeled.
After the reports aired, some grocery store chains said they would stop carrying ground beef that contained the product. Beef Products Inc. claimed in the 2012 complaint that sales declined from about 5 million pounds per week to less than 2 million pounds per week.
The product can be added to ground beef to reduce the overall fat content. It's made from trimmings left after a cow is butchered. The meat is separated from the fat, and ammonia gas is applied to kill bacteria. Former Department of Agriculture microbiologist Gerald Zirnstein named the product "pink slime" in a 2002 agency email.
Beef Products Inc. has said the sales drop forced it to close plants in Iowa, Kansas and Texas, laying off more than 700 workers. Only a Nebraska plant in South Sioux City remained open.
"Through this process, we have again established what we all know to be true about Lean Finely Textured Beef: it is beef, and is safe, wholesome, and nutritious," the company statement said. "This agreement provides us with a strong foundation on which to grow the business, while allowing us to remain focused on achieving the vision of the Roth and BPI family."
Both ABC and Beef Products Inc. declined to comment beyond their written statements.
Beef Products Inc. could have been seeking damages as high as $1.9 billion, according to a U.S. Securities and Exchange Commission filing from Disney, which owns ABC. Beef Products Inc. was also seeking "treble" damages, or triple the amount, under South Dakota's Agricultural Food Products Disparagement Act, as well as punitive damages.
Opening statements in the trial against ABC and correspondent Jim Avila were in early June, and the trial was scheduled to last until late July.
Business on 06/29/2017