DAKOTA DUNES, S.D. — Net profit for Beef Products Inc. plunged $70 million in the aftermath of a widespread controversy over its lean beef trimmings, court documents show.
The staggering losses are detailed in the defamation lawsuit the Dakota Dunes-based firm filed Thursday against ABC News, its parent company and six individuals involved with a series of reports by the network between March 7 and April 3.
BPI alleges the network made 200 "false, misleading and defamatory" statements about the company and its product during that 28-day period, causing the public to mistakenly believe the meat was unhealthy and unfit for human consumption. ABC's action, BPI contends, ignited a consumer backlash that led to the company losing nearly 80 percent of its sales.
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