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Beef Products Inc. Sues ABC Over Repeated Attacks On ‘Pink Slime’

Filed by KOSU News in Business.
September 13, 2012

Beef Products, Inc., the South Dakota company at the center of a firestorm this spring over its product labeled “pink slime” by critics, announced Thursday it is suing ABC News for defamation and $1.2 billion in damages.

BPI alleges that ABC reporters and hosts made 200 false statements over the course of a month about BPI’s product, known in the industry as lean, finely textured beef (LFTB).

“[ABC] did this with malice, and they knew what they were doing,” Dan Webb, chairman of Winston & Strawn LLP, the lawyer handling the complaint for the company, told reporters at a press conference at the company’s headquarters. “They decided to destroy this business… and they decimated the product in the marketplace.”

ABC’s report on March 7, and subsequent stories, led consumers to believe that LFTB was not actually beef and that it was unsafe, according to Webb.

LFTB, BPI’s sole product, is made from the trimmings of many cuts of beef. It’s often added to ground beef — at least until it became controversial earlier this year.

Though other media outlets also questioned the product’s safety, “we picked the news organization we believed damaged [the company],” Webb told reporters.

Webb says the damages were caused by a “sustained, night-after-night” series of stories and ABC’s creation of a “blacklist” of BPI’s customers, including retailers like Safeway. And BPI says that ABC continued with its defamatory coverage even after BPI and others sent ABC evidence from U.S. Department of Agriculture, the Food and Drug Administration, food safety organizations and beef industry experts that LFTB is a “safe, nutritious lean beef.”

Before the controversy exploded, BPI was a major supplier of lean finely textured beef to fast food outlets, the National School Lunch Program, and retail grocers around the country.

When consumers learned it was highly processed and treated with ammonia to kill bacteria — much like other meats — they launched boycotts and protests, eventually succeeding in getting major retailers to drop it.

Since then, the company says its LFTB production dropped from 5 million pounds to 2 million pounds. The company closed three out of its four plants and laid off more than 700 employees.

The complaint was filed in a Circuit Court in Union County, S.D.

ABC denies its reports were defamatory.

“The lawsuit is without merit,” Jeffrey Schneider, senior vice president of ABC News, said in a statement. “We will contest it vigorously.” [Copyright 2012 National Public Radio]

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