Pink Slime Lawsuit Settlement: ABC, Meat Producer Settle $1.9 Billion Case

The U.S.-based television network ABC News announced a settlement Wednesday in a $1.9 billion defamation case filed against it by Beef Products Inc. (BPI), an American meat processing company, over its reports on beef products that the channel dubbed “pink slime.” However, the terms and conditions of the settlement have been kept confidential, the Sioux City Journal reported.

The South Dakota-based BPI had sued ABC News anchor Diane Sawyer and reporter Jim Avila for $1.9 billion in 2012, the Hill reported.

Read: 'Pink Slime' Factories Brace For Permanent Shutdown, BPI Slashes 650 Jobs

The report added that the lawsuit was filed after the news channel dubbed the beef manufacturer’s products as “pink slime.” Pink slime is a meat by-product used as a food additive in beef-based processed meats as filler or to reduce the overall fat content of the beef.

The term pink slime was first coined in the year 2002 by Gerald Zirnstein, a whistleblower and a former United States Department of Agriculture (USDA) scientist, who said it is “not fresh ground beef.… It's a cheap substitute being added in.”

In the lawsuit, BPI alleged Avila misled consumers about the safety of low-cost processed beef trimmings, popularly known as Lean Finely Textured Beef. LFTB is also commonly known as pink slime due to its color and appearance. BPI sought $1.9 billion in damages from the ABC network.

The ABC news report on processed beef products raised questions about the quality of the meat, which was easily available in grocery stores and was used in restaurants as well as schools.

Soon after the ABC reports were aired, BPI faced a huge public backlash, leading to a sharp decline in sales. The company was even forced to shut down three of its beef processing plants, resulting in mass layoffs of about 700 workers, the New York Times reported.

Read: Pink Slime Meat to be Dropped from US School Menu

After the settlement of the lawsuit, ABC News' spokesperson Julie Townsend said Wednesday, the media group maintained the accuracy of its reports. “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,” Townsend said in a statement.

Thanking jurors, Avila said: “I wish they had had the chance to hear my side of the story. It's important to note we're not retracting anything or apologizing for anything,” the Sioux City Journal reported.

BPI Attorney Dan Webb in a brief statement outside the Union County Courthouse Wednesday said: “We are extraordinarily pleased with this settlement. I believe we have totally vindicated the product,” the Sioux City Journal reported.

BPI too issued a statement after the settlement. It read: “While this was not an easy road to travel, it was necessary to begin rectifying the harm we suffered as a result of what we believed to be biased and baseless reporting in 2012. Through this process, we have again established what we all know to be true about Lean Finely Textured Beef: it is beef, and it is safe, wholesome and nutritious. 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.”