The parent company of ABC News paid as much as $177 million to settle litigation associated with a defamation lawsuit filed by a South Dakota beef processing company, according to a financial report released to investors.
Walt Disney Co., the owner of ABC, made the disclosure to investors in its quarterly report on Tuesday. The company reported a one-time charge of $177 million “incurred in connection with the settlement of litigation,” according to the report. The charge did not include penalties covered by insurance.
Dakota Dunes-based BPI filed a defamation suit against ABC and reporter Jim Avila in 2012 after a series of reports that described the company’s Lean Finely Textured Beef products as “pink slime.” Following ABC’s reports, the company closed three of its four plants and laid off more than half its workforce as BPI’s customers stopped including LFTB in their hamburger specifications.
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