Oprah Winfrey - The Story of an Entrepreneur

Introduction Contd...

On the show, Oprah swore that she would never eat a hamburger again in her life. In May 1996, some cattle producers filed a $10.3 million suit against Oprah and Lyman in the Texas state court, under the Texas False Disparagement of Perishable Food Products Act,³ claiming, business disparagement, negligence and defamation. They said Oprah created fear regarding the consumption of beef, when she vowed that she would never again eat a burger in her life. David Mullin, an attorney representing cattle producers, said, "The message of the show was never meant to be where opinions are shared. The show was meant to be scary."

The cattle producers claimed that Oprah knowingly aired false and defamatory comments about the threat of mad cow disease in the US. The show reportedly had a devastating impact on cattle prices and sales in the US. Prices fell to a 10-year low within a week of the show, causing losses exceeding $12 million to the cattle producers. However, Chip Babcock, Oprah's attorney, claimed that the show in question was fair and did not suggest that beef was unsafe. Commenting on the decline in cattle prices following the show, Oprah's attorneys said that the decline in prices was due to factors such as drought and oversupply. Oprah soon aired a second show on the 'Mad Cow Disease,' with cattle industry representatives on the discussion panel to arrive at a balanced perspective on the issue.

Commenting on this, Bill O'Brien, a co-owner of the Texas Beef Group said, "I do not think it repaired the damage. She did not go on the program and eat a hamburger before the world." In February 2000, a federal court dismissed the suit against Oprah stating that though Oprah's show melodramatized the issue, it did not give false information to defame cattle producers. The court also acquitted Lyman, stating that his statements, though strongly stated, were based on established facts. The issue attracted media attention all over the world, highlighting Oprah's immense popularity and influence over her viewers. Oprah, with a business empire worth over $ 1 billion in 2002, was unarguably the most successful female media personality ever. How this lady overcame her disturbed, troubled childhood, and several other problems to become so popular and successful is essentially a story of her entrepreneurial and leadership skills.

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3] Under this Act, people can be held liable if they make false and disparaging statements regarding perishable food products.

Case Details

Case Code : LDEN006
Themes: Corporate Social Responsibility/Woman Entrepreneurs
Case Length : 14 Pages
Period : 1957-2000
Organization : Infosys
Pub Date : 2002
Teaching Note : Not Available
Countries : Japan
Industry : Media and Entertainment

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