Bush administration settles Hatfill suit, buries anthrax investigation

Hatfill was the subject of intense media attention for more than a year, and was fired from a job at Louisiana State University because of FBI pressure. He will receive a lump-sum payment of $2.825 million, as well as an annuity that will pay him another $3 million, or $150,000 a year over the next 20 years.

One consequence of the deal is that the ongoing federal case against former USA Today journalist Toni Locy is likely to be quashed. Locy was subpoenaed by Hatfills attorneys, who demanded to know the sources for several articles she had written about the case. Locy refused to comply, citing journalistic confidentiality, but was facing $5,000 per day fines imposed by US District Judge Reggie Walton. The fines were stayed while Locys appeal worked its way through the courts.