A federal judge sent Beef Products, Inc.’s (BPI) defamation lawsuit against American Broadcasting Corporation and ABC News, Inc. for its coverage of lean finely textured beef, dubbed “pink slime” in the popular media, back to state court. The meat processor is seeking $1.2 billion in damages, saying the news coverage misled consumers into thinking the product was unhealthy or unsafe to eat. US District Judge Karen Schreier ordered the case back to the circuit court in South Dakota’s Union County , where it was originally filed by BPI’s lawyers.