Disney to Pay $177 Million, Not $6 Billion, in "Pink Slime" Lawsuit

Disney (NYSE: DIS) has managed to avoid getting slimed. The entertainment giant was potentially on the hook for a legal tab that approached $6 billion, but after a settlement with Beef Products Inc. (BPI) for a report on so-called pink slime by its ABC News division, Disney will only fork over $177 million.

The infamous news broadcast five years ago featured a former U.S. Department of Agriculture scientist referring to a ground-beef additive as "pink slime." The news channel's report on lean finely textured beef (LFTB) also said it previously was used only in dog food or cooking oil. The program created an instant uproar, and as a result, major supermarket chains announced they would drop from their meat cases any ground beef that contained the additive, while Wal-Mart, Kroger, and others began offering shoppers ground-beef choices without it.

Image source: Getty Images.

Source: Fool.com