As previously blogged, Chinese iPod manufacturer Foxconn sued two journalists who alleged that Foxconn was guilty of serious labor violations. (Apple investigated the claims and found them mostly false.)

Foxconn sued the journalists for an insane amount of money, and had their assets frozen. Predictably, a public backlash ensued. UCLA's Asia Media now reports that Foxconn has dropped their suit from 30 million yuan to one yuan, but still asserts they were defamed.

The company has been required by the government to allow its workers to unionize.