World Insurance Report
Liability, awards and settlements
3.6, false accusations, settlement
US: a Taiwanese-American scientist once suspected as a spy will receive $1.64mn after settling lawsuits against the US government
and five news outlets. Wen Ho Lee, who used to work at the Los Alamos nuclear laboratory, had sued the government for leaking
information implying he was a Chinese spy. He also sued five news outlets who reported on the affair. Mr Lee came under suspicion
while working at Los Alamos, but all charges, except one minor one, were dropped. Washington has agreed to pay Mr Lee $895,000
to cover his costs and legal fees. The remaining $750,000 (£400,000) will be covered by the five news organisations: Associated
Press,
The New York Times, The Los Angeles Times
, ABC News and
The Washington Post
. The parties agreed to settle following a legal battle lasting more than six years. A Taiwanese-born US national, Mr Lee
was fired from Los Alamos nuclear laboratory in New Mexico in March 1999 on suspicion of helping China obtain top-secret information.
He was held for nine months in solitary confinement but the government’s case against him collapsed and all 59 charges against
him were dropped, except for one minor offence. Following his release in September 2000, Mr Lee decided to take out a civil
lawsuit against the government for leaking false information about him. He also sued five journalists who covered the story,
alleging they had damaged his reputation. Both Mr Lee and US officials made clear that the settlement should not be viewed
as an admission of guilt by the US government.