Disney Paid at Least $177 Million to Settle 'Pink Slime' Case
Walt Disney Co's (DIS) - Get Report fiscal third quarter financials released Tuesday show the company paid at least $177 million in addition to insurance recoveries to settle the "pink slime" defamation case brought against its ABC network, Reuters reported.
Beef Products Inc. sued ABC in 2012 for $5.7 billion, claiming reporter Jim Avila defamed the company by calling its "lean finely textured beef" by the "pink slime" tag. BPI also alleged Avila made errors and omissions in a series of "pink slime" stories that year.
Disney and BPI reached a settlement in June, a little over three weeks after the trial between the two began in South Dakota where BPI is headquartered. Disney said in a footnote in its most recent earnings report that it was seeking additional insurance proceeds to recover its cash payment.
Disney stock traded down nearly 5% to $101.77 late-morning Wednesday.
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