Disney pays $177m in ‘pink slime’ defamation case

By Oscar Rousseau contact

- Last updated on GMT

Beef Products Inc reached a settlement with ABC in June
Beef Products Inc reached a settlement with ABC in June
Walt Disney has reportedly paid $177 million to settle a ‘pink slime’ lawsuit against its subsidiary American Broadcasting Company (ABC) for a story it ran in 2012 that allegedly defamed Beef Products Inc.

A footnote in the Walt Disney Company’s third-quarter financial results, posted on 8 August, revealed the corporation paid out $177m in connection with a litigation case.

The 14-page financial report did not expressly state the litigation was linked to the ABC lawsuit, but it is the only litigation fee referenced in the entertainment conglomerate’s trading update.

Disney said the charge was “incurred in connection with the settlement of litigation”.

‘Baseless reporting’

Its post comes after Beef Products Inc secured an undisclosed settlement on 28 June 2017 after the meat processor brought a trial against ABC​ and its journalist Jim Avila.

In a statement at the time, Beef Products Inc said: “We are extraordinarily pleased to have reached a settlement of our lawsuit against ABC and Jim Avila.

While this has not been 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 is safe, wholesome, and nutritious.​”

ABC also issued a statement at the time that said: “ABC has reached an amicable resolution of its dispute with the markers of ‘lean finely textured beef’. Throughout this case, we have maintained that our reports accurately presented the facts and views of knowledgeable people about this product. Although we have concluded that continued litigation of this case is not in the company’s best interests, we remain committed to the vigorous pursuit of truth and the consumer’s right to know about the products they purchase.​”

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