• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
FinanceLawsuit

Meat Packer Suing ABC Says ‘Pink Slime’ Story Nearly Killed the Company

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
June 6, 2017, 1:25 AM ET
Operations On The Northstar Bison Ranch As Diners Swap Steak For Grass-Fed Game
Bricks of grass-fed ground bison are packaged at the NorthStar Bison LLC processing plant in Rice Lake, Wisconsin, U.S., on Wednesday, Sept. 3, 2015. Bison continues to gain in popularity and chip away at beef's dominance in the meat market. The growing appetite for bison is part of a wider trend toward organic foods, a small but expanding part of the food industry. Aside from the perceived health benefits, demand for such meat signals a rejection of factory-farming methods that account for most protein eaten in the U.S. Photographer: Luke Sharrett/Bloomberg via Getty ImagesLuke Sharrett—Bloomberg/Getty Images
Add Fortune on Google for similar content.

ABC News’ characterization of a South Dakota meat processor’s ground-beef product as “pink slime” almost put Beef Products Inc out of business, BPI’s lawyer said on Monday in the opening salvo of a closely watched trial.

The $5.7 billion lawsuit pitting big agriculture against big media is the first major court challenge against a media company since accusations of “fake news” by U.S. President Donald Trump and his supporters have become part of the American vernacular.

The trial is expected to run eight weeks.

BPI claims ABC, a unit of Walt Disney (DIS), and its reporter Jim Avila defamed the company by using the term “pink slime” and making errors and omissions in its 2012 reporting.

But ABC lawyer Dane Butswinkas said “pink slime” was a common term, used more than 3,800 times in the media prior to ABC’s reports.

In the aftermath of ABC’s broadcasts, BPI closed three of its four processing plants and said its revenue dropped 80% to $130 million.

“That success took about 30 years to succeed and it took ABC less than 30 days to severely damage the company,” a lawyer for BPI, Dan Webb, said in court.

Butswinkas countered that BPI had already lost multiple customers for LFTB, including major fast food chains, prior to the ABC reports, due to unhappiness with the product.

ABC has said its coverage was accurate and deserved protection under the U.S. Constitution’s First Amendment which guarantees freedom of religion, speech and the right to a free press.

ABC denies any wrongdoing and is confident its reporting will be “fully vindicated,” a lawyer for ABC and Avila, Kevin Baine of Williams & Connolly, has said.

The trial is being held in Elk Point, South Dakota, about 20 miles north of BPI’s headquarters, which employs 110 people. Roughly 6% of the area labor force is involved in agriculture and related industries, according to the local chamber of commerce.

Election records show 67% of the U.S. presidential vote in Union County, where Elk Point sits, was won by Trump, who uses the term “fake news” to argue that some mainstream media outlets cannot be trusted.

Lawyers for BPI have declined to say if they plan to focus on “fake news” as a tactic at trial. But during a January court hearing, a BPI lawyer, Erik Connolly, said ABC broadcasts and online reports about “lean finely textured beef” (LFTB) used unreliable sources and set out to foment public outrage. The ABC reports amounted to “fake news,” Connolly told the judge.

BPI’s signature product, commonly mixed into ground beef, is made from beef chunks, including trimmings, and exposed to bursts of ammonium hydroxide to kill E. coli and other contaminants.

Webb said in court on Monday that between March 7 and April 3 of 2012, ABC used the term “pink slime” more than 350 times across six different media platforms including TV and online.

Reporter Avila, who was in the courtroom wearing a gray suit and striped tie, had cherry-picked experts who backed up the story he wanted to tell and ignored experts who gave information that differed from this narrative, Webb said.

Webb said Avila cursed at David Theno, a food safety expert, and hung up on Theno when he contradicted parts of Avila’s story.

“That is what happens when someone tells ABC something that’s not consistent with what they want to hear about the product.”

For more about the meaty industry, watch Fortune’s video:

Butswinkas, the lawyer for ABC, described Avila as an “old-school bulldog” journalist and said Theno was paid by BPI and had a close relationship with the company’s founder.

The focus of ABC’s story was not food safety but labeling, Butswinkas said. He said BPI lobbied for years to get its LFTB added to ground beef without labels indicating it was there.

“Until the secret started to get out to consumers, no one knew that there was a product treated with ammonia in their traditional ground beef,” he said.

To win its case, BPI must show the network intended to harm the company or knew what it reported was false when it referred to BPI’s LFTB product as “pink slime.”

The trial is upending the normally tranquil Elk Point, population 2,000. To make room for overflow crowds, the county commission earmarked $175,000 to turn the Union County Courthouse basement into an enlarged courtroom and move records into a specially constructed separate building.

BPI moved modular offices into town to accommodate its legal team, the company said.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Best private student loans for medical school
Personal Financestudent loans and debt
Best private student loans for medical school
By Joseph HostetlerJuly 2, 2026
6 hours ago
Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
Investingstock prices
Michael Burry just shorted Caterpillar’s 172% AI rally. One analyst says his bet won’t even matter
By Marco Quiroz-GutierrezJuly 2, 2026
7 hours ago
U.S. Treasury Secretary Scott Bessent
EconomyDebt
AI’s $2.2 trillion deficit fix is already half fake, economists say
By Tristan BoveJuly 2, 2026
8 hours ago
s
Personal FinanceSports
The sports economy is unaffordable at the bar, let alone the stadium
By Catherina GioinoJuly 2, 2026
8 hours ago
sb
North AmericaU.S. Department of the Treasury
Scott Bessent goes after the top Mexican cartel’s new billion-dollar business: gas stations
By Fatima Hussein and The Associated PressJuly 2, 2026
8 hours ago
eggs
LawAntitrust
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
9 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
20 hours ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
10 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
2 days ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.