- Associated Press - Tuesday, January 28, 2014

PHOENIX (AP) - Attorney General Tom Horne and the state have reached a settlement agreement with an employee in his office who claimed she faced retaliation after telling the FBI Horne may have violated campaign finance laws.

The federal court filing by lawyers for Margaret Hinchley, Horne, Chief Deputy Attorney General Richard Bistrow and the state says the settlement agreement will be filed in about three weeks.

Hinchley sued Horne, Bistrow and the state last year. She alleged Horne and Bistrow retaliated after she told the FBI that the Horne may be connected to illegal campaign activities.

A judge allowed defamation and conspiracy claims made by Hinchey to go forward in August, while dismissing other claims.

Horne also is trying to settle campaign finance violation allegations filed by the Yavapai County Attorney.

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