Gizmodo in the Clear After Leaking iPhone 4

The blog Gizmodo is in the clear after a California prosecutor dropped charges for purchasing and leaking an iPhone 4 prototype in March 2010.

Gawker Media, Gizmodo's parent company, posted an official statement Wednesday announcing the site and its editor, Jason Chen, were in the clear.

"We are pleased that the District Attorney of San Mateo County, Steven Wagstaffe, has decided, upon review of all of the evidence, that no crime was committed by the Gizmodo team in relation to its reporting on the iPhone 4 prototype last year. While we have always believed that we were acting fully within the law, it has inevitably been stressful for the editor concerned, Jason Chen, and we are glad that we can finally put this matter behind us."

Gizmodo exposed a prototype of Apple's iPhone 4, one of most highly anticipated devices at that time, in March 2010. Gizmodo reportedly purchased the device for $5,000 from Sage Wallower and Brian Hogan, who have been charged for misdemeanors instead of Gizmodo.

Hogan had found the prototype after an Apple engineer accidently left the iPhone 4 in a bar. After trying to return the phone to its owner, Hogan notified Apple, which never responded. Thereafter, Hogan enlisted the help of his friend Sage Wallower to assist selling the phone to various tech publications and Web sites.

The pair has been charged with misdemeanors for misappropriation of lost property and Wallower also received a charge for possession of stolen property. They will be arriagned on Aug. 25.