Complex sentence: Merco, the company profiting from the practice, retaliated with a libel lawsuit against Kaufman, TV Nation and its parent company, TriStar Television but the case was dismissed on appeal.
Split into simpler sentences: Merco, the company profiting from the practice, sued for libel. Merco retaliated with a libel lawsuit against Kaufman, TV Nation and its parent company, TriStar Television but the case was dismissed on appeal.