Wen Ho Lee, the former nuclear weapons scientist once suspected of being a spy, settled his privacy lawsuit Friday and will receive $1.6 million from the government and five news organizations in a case that turned into a fight over reporters' confidential sources.

Lee will receive $895,000 from the government for legal fees and associated taxes in the 6 1/2-year-old lawsuit in which he accused the Energy and Justice departments of violating his privacy rights by leaking information that he was under investigation as a spy for China.

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