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Gizmodo not in trouble for iPhone 4 leak, but guess who is

Gizmodo not in trouble for iPhone 4 leak, but guess who is...
CC Jorge Quinteros/Flickr

(CBS) - The staff at Gizmodo can let out a sigh of relief now that they're off the hook for buying an iPhone 4 prototype last spring.

The District Attorney of San Mateo County decided Wednesday not to file charges against the bloggers. In the official statement the DA stated, "After a consideration of all the evidence, it was determined that no charges would be filed against employees of Gizmodo."

Gawker Media released this statement following the decision:

"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."

Who is in trouble for this debacle?

Brian Hogan and Sage Wallower, the two men who found and sold the iPhone 4 to editors at Gizmodo are facing charges. This statement was released by the DA Wednesday:

"The San Mateo County District Attorney's Office has filed misdemeanor charges against two individuals for the misappropriation of an iPhone 4 prototype that was lost by an Apple employee and subsequently recovered in a Redwood City establishment by the defendants on March 25, 2010. Brian Hogan, 22, of Redwood City was charged with one count of misappropriation of lost property, and Sage Wallower, 28, of Emeryville, was charged with misappropriation of lost property, and possession of stolen property. Their arraignment is scheduled for Thursday, August 25, 2011 at 9:00 in Redwood City."

How did these two men end up in such hot water?

In the height of iPhone 4 anticipation in March 2010, Apple software engineer Gray Powell was drinking with friends to celebrate his birthday in Redwood City, Calif. After leaving the bar, fellow imbibers noticed an iPhone left behind by Powell. Two men, who did not know Powell, took the mysterious phone and allegedly tried to contact Apple to return the item to no avail.

Gizmodo eventually purchased the prototype of the iPhone 4 for $5,000. After confirming it was the a real Apple product, they dissected the device and published their findings.

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