A couple of things about the Wen Ho Lee case. The first is that the NYT presented leaked documents and innuendo from unnamed sources about Lee's culpability. All this turned out to be either not true or completely blown out of proportion.
The second is that Robert Scheer, a reporter for the LA Times (back then) and The Nation magazine, and now editor of Truthdig.com, really risked his reputation in defending Lee when he was under attack by the major media.
Scheer ended up winning an award for his work, and as you mention, Lee got a $1.6M settlement from the media and from the government. For more: http://www.truthdig.com/report/item/20060606_robert_scheer_l...