ABC News Asks Federal Judge to Dismiss BPI Lawsuit

SOUTH DAKOTA ABC News has asked a federal judge in South Dakota to throw out a $1.2 billion defamation lawsuit filed against it by Beef Products Inc. (BPI), the maker of lean finely textured beef.

Lawyers for ABC and its journalists contend BPI has failed to state a claim for which relief can be granted, a common argument in seeking to throw out a complaint early on in litigation. ABC also has alleged two of the plaintiffs, BPI Technology, Inc. and Freezing Machines, Inc. are not "real parties in interest" and therefore have no right to assert the claims in the 257-page complaint.

Judges rarely throw out an entire case of this magnitude early on in complex litigation, and such a decision would almost certainly face an appeal. An attorney representing the plaintiffs said the motions to dismiss the case will be challenged.

"We believe the complaint sets forth valid claims," Erik Connolly, a Chicago-based partner with the firm of Winston & Strawn LLP, stated in an email Thursday.

In voluminous memorandums, ABC sets forth a number of reasons why the case should be dismissed. For instance, the media giant's lawyers declare BPI cannot state a claim under South Dakota's Agricultural Food Products Disparagement Act because ABC didn't question the safety of BPI's meat product. ABC also wants the court to dismiss claims of disparagement of an agricultural food product, libel and tortious interference with business relationships.

"Although the complaint is lengthy and seemingly complex, all of these issues are appropriated addressed on a motion to dismiss," ABC lawyers wrote in a memo to the court. "Indeed, it is vitally important that they be addressed at the outset, because libel claims directly challenge free speech, and the mere pendency of these cases threatens to inhibit additional speech."

In September, BPI filed its lawsuit against ABC News, journalists including Diane Sawyer, former government officials and an ex-employee of the meat company. The South Dakota-based meat company claims ABC launched untruthful and vicious attacks against it in a series of broadcasts and online reports that have hurt its bottom line and relationships. Lawyers who practice media law have said BPI faces many hurdles proving its case given the broad protections offered by the First Amendment and higher standard of proof that applies in such cases.

The lawsuit was originally filed in a circuit court in South Dakota, but ABC removed it to the U.S. District Court for the District of South Dakota, Southern District. Connolly would not comment on whether the plaintiffs would try to send the case back to the circuit court.