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Hon Hai completely drops suit against "iPod City" journos

Evan Blass
09.04.06
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After folding under public (and perhaps governmental) pressure and reducing the damages it was seeking against two Chinese journalists from 30 million yuan ($3.77 million) to just 1 yuan (12 cents), Taiwan-based Hon Hai Precision Industry has now wised up and dropped the libel suit altogether. As a quick review (though we doubt that you need one), Hon Hai took legal action against China Business News' Wang You and Weng Boa following their report on the much-publicized working conditions at the Foxconn plant lovingly dubbed "iPod City," asking for compensation amounting to many times the reporters' annual salaries and convincing a court to temporarily freeze their assets. The PR nightmare ended on Sunday when Hon Hai chose not to pursue the case any further, according to China's official Xinhua news agency, and was capped off with a mutual apology between the firm and newspaper for all the trouble that the lawsuit had caused. In an encouraging sign that this method of dispute settlement may actually be gaining ground elsewhere in the world, TiVo followed the announcement by sending a bouquet of flowers to Echostar, NTP decided to return the $612 million it won from RIM inside a Hallmark greeting card, and Shannon Derrik and Stephanie Eick (the iPod lawsuit girls) realized after a mediated tea party that they wanted to forgo the legal silliness and go back to being BFFs.

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