After losing the case in an earlier trial,New Yorkerwriter Janet Malcolmwas cleared of libel in a lawsuit brought by a psychoanalyst who said she'd made up quotes in an unflattering article about him. A U.S. District Court jury in San Francisco found that two quotes used by Malcolm were indeed false, but it ruled that Jeffrey Masson failed to prove a deliberate or reckless disregard for the truth -- a higher standard that applies to public figures under fire. The 1992 New Yorker article focused on Masson's firing as projects director of the Sigmund Freud Archives. After Masson's earlier win, the jury deadlocked on damages and a retrial was ordered. Although Malcolm may have been cleared, she was forced to reveal that she had compressed quotes from different interviews and presented them as part of one. "Even though she won a clear cut victory in court she still leaves this case with her reputation tarnished," says TIME legal reporter Andrea Sachs. "Her revelations about how she 'compressed' Masson's statements were very damaging."