BPI Files Suit Against ABC for Disinformation Campaign
Suit claims false and disparaging statements about lean, finely textured beef (LFTB) caused more than 700 Americans to lose jobs, three facilities to close and more than $1 billion in claimed damages.
BPI Technology Inc., Beef Products Inc., and Freezing Machines Inc. (collectively BPI) filed a suit against the American Broadcast Companies Inc. (ABC), ABC News Inc., three ABC News reporters, and others for knowingly and intentionally publishing false and disparaging statements regarding BPI and its product, lean, finely textured beef (LFTB). BPI alleges that ABC and others launched a concerted disinformation campaign against the companies, which had a significant adverse effect on BPI's reputation, as well as a significant negative financial impact on the companies.
"For more than 30 years, our family has built and operated companies that are committed to providing consumers with wholesome, safe and nutritious lean beef. We've created thousands of good jobs for Americans and our lean, finely textured beef has made the leaner ground beef that consumers desire more affordable," said Eldon Roth, founder and CEO of BPI. "The blatantly false and disparaging statements made about our lean beef have done more than hurt my family and our companies; they have jeopardized the future of our employees and their families."
In their complaint, filed Sept. 13, 2012, in Circuit Court in Union County, S.D., BPI alleges that ABC and the individuals named in the suit knowingly made false, defamatory and disparaging statements regarding BPI and LFTB during a disinformation campaign this spring. These statements were made even after BPI and others sent ABC factual information about LFTB, including conclusions from USDA, FDA, food safety organizations and numerous beef industry experts that LFTB is a safe, nutritious lean beef. As a result of the disinformation campaign, BPI sales declined from approximately 5 million pounds (lb.) of LFTB per week to less than 2 million lb. per week, three BPI facilities closed, and more than 700 employees lost their jobs.
"Through nearly 200 false, misleading and defamatory statements, repeated continuously during a month-long disinformation campaign, ABC and other individuals knowingly misled consumers into believing that LFTB was not beef and not safe for public consumption, which is completely false," said Dan Webb, chairman, Winston & Strawn LLP. "BPI has filed suit because their business has been severely damaged by this conduct. As a result, we will be asking a jury to award BPI more than $1 billion in compensatory and statutory damages, plus punitive damages." BPI seeks to recover damages for defamation, product and food disparagement, and tortious interference with business relationships.
BPI continues its ongoing efforts to correct the disinformation published about its companies and LFTB and to share factual information about LFTB. A copy of the complaint and facts about LFTB are available at www.beefisbeef.com.
Editor's Note: This release is from BPI.
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