Boxun News says it has retracted its "negative and untrue" reports that she was a prostitute who had sexual relations with Chinese government officials.
Los Angeles court documents said Zhang had sued China Free Press, Inc.—a North Carolina non-profit corporation—doing business as Boxun News, and its founder for damaging her reputation and business interests.
Zhang complained that Boxun News had published untrue reports that she earned more than $100 million by having sexual relations with Chinese government officials and others.
Boxun News says the false reports should never have been published.
A court document filed Tuesday said the case had been settled.