State Senator Pays $150K to Settle Defamation Lawsuit

A nearly 4-year-old defamation lawsuit against a Nevada state senator has been settled after the politician agreed to pay $150,000 in damages to his accuser.

State Senator Mike Schneider was scheduled to testify on Monday about his finances so the jury could decide on the punitive damages. However, a settlement deal was reached prior to the hearing.

The settlement will be going to Danny Tarkanian, the senator's 2004 election challenger. Tarkanian was also awarded $50,000 in damages in a late Friday night verdict last week. Schneider has said he will not appeal the decision.

Gus Flangas, attorney for Tarkanian, told the Las Vegas Sun the verdict disproves the allegations of criminal behavior that was raised against his client by Schneider during the election campaign.

In 2004, Schneider accused Tarkanian of setting up telemarketing companies that were later found to be running scams, and that his challenger had provided evidence to the state to avoid prosecution.

Though Tarkanain has admitted to setting up the companies, he has said he wasn't aware of the day-to-day activities. Leif Reid, a former assistant U.S. Attorney, testified that Tarkanian was not part of the investigation into the companies.