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AIG sued the Walt Disney Company on Thursday, seeking a declaration that it does not have to pay a $25 million insurance claim arising from the “pink slime” defamation case.
Beef Products Inc. filed a multibillion defamation claim in South Dakota following a series of ABC News reports on lean beef trimmings, otherwise known as pink slime. Partway through the trial in June, Disney settled the case. The terms were confidential, but in August, the company disclosed a legal expense of $177 million, most of which was attributed to the settlement.
Since then, AIG and Disney have been fighting over whether the settlement should be covered by Disney’s $25 million insurance policy. Last week, Disney sued AIG in federal court, seeking to force the insurer into arbitration in Los Angeles.
On Thursday, AIG laid out some of its argument as to why the claim should not be paid. According to the suit, the policy requires that ABC obtain written approval from outside counsel before broadcasting its report.
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