ABC News Sued for $1.2 BILLION Over 'Pink Slime'

A South Dakota beef processing company is suing ABC News for $1.2 billion over its coverage of "pink slime", which the company says ABC portrayed as unhealthy and unsafe.

Beef Products Inc. says ABC made 200 "false and misleading and defamatory" statements about the product, which BPI says is just lean, finely textured beef.

In one report, ABC featured a former USDA scientist who claimed 70% of the ground beef found in supermarkets contains pink slime ... "beef trimmings that were once used only in dog food and cooking oil, now sprayed with ammonia to make them safe to eat and then added to most ground beef as a cheaper filler."

An attorney for BPI said ABC's reporting "caused consumers to believe that our lean beef is not beef at all - that it's an unhealthy pink slime, unsafe for public consumption, and that somehow it got hidden in the meat." The attorney said the reports had "an enormous impact" on the company, forcing it to close three of its four U.S. plants and lay off more than 650 workers.

One of the biggest purchasers of U.S. beef, McDonalds cut pink slime from its burgers early this year. TV chef Jamie Oliver has also been a public, vocal opponent.

A rep for ABC says the lawsuit is baseless and will be contested.

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