No, it didn't. It sued Primetime and ABC for trespass, fraud, and breach of duty of loyalty, not libel. Also, ABC never settled the case. The Fourth Circuit reversed Food Lion's punitive damages and fraud award and affirmed a $2 judgment against ABC--a dollar each for the trespass and breach of duty claims.
But look, I didn't mean to hijack this thread with Food Lion. I'm done if everyone else will be.