Hongfujin Precision Industry Co., a Chinese supplier of Apple Computer Inc.'s iPod, has reduced the damages it's seeking in a lawsuit against two Chinese journalists.

In June, Chinese Business News reporters Wang You and Weng Bao wrote an investigative piece alleging the company forced employees at its Longhua plant to work 15-hour days at salaries below minimum wage.

Soon after publication, Hongfujin, a subsidiary of Taiwan-based Foxconn Technology Holdings, filed suit, alleging defamation. At the time, the company requested $3.8 million in damages. However, on Aug. 31, amid pressure from journalist organizations, Hongfujin reduced its demand for damages to a mere 12 cents.

Meanwhile, Apple conducted its own investigation of the Chinese plant. On Aug. 17, it published a report citing several unsatisfactory workplace conditions including three cramped dormitories and an overly complex pay structure.

“Two employees reported that they had been disciplined by being made to stand at attention,” according to the report. “While we did not find this practice to be widespread, Apple has a zero tolerance policy for any instance, isolated or not, of any treatment of workers that could be interpreted as harsh.”