The BBC is to pay £185,000 plus costs to a former senior British political figure, Lord McAlpine, after broadcasting a report which resulted in him being wrongly identified as a child abuser.
A statement said the settlement reflected the gravity of the false allegations.
A report by the Newsnight programme did not directly name Lord McAlpine, but resulted in him being identified.
Lord McAlpine's lawyer says legal action will be taken against those who used social networking sites to name him.
