For their full explanation, read this.
In a nutshell, they are still claiming that Rove was indicted according to their sources and that, after their story appeared, Rove's lawyer Luskin made a deal with prosecutor Fitzgerald to supply him with information regarding Cheney's role in the affair (Plame's outing). They are still (rightfully, I think) wondering exactly what was in the letter supposedly exonerating Rove that Fitzgerald faxed or sent to Luskin since that has never been made public.
Here's the deal: we won't know the truth of all of this until we know the truth of all of this. I know that many people have completely dumped truthout as a reliable source over this. Frankly, I think that's premature and unfair. As for Leopold, I'm also aware of his sordid past but does that necessarily mean he's wrong on this story? We just don't know and I will not pass judgment on him until all of the details come out. I also think those who have been calling for him to out his sources are being irresponsible. He'll live or die journalistically by this story but his sources need to be protected.
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