SORT OF TRUE STORY

Attorney Kenneth Kahn, who’s been waging an $11-million libel lawsuit against Orion Pictures over his portrayal in “The Falcon and the Snowman,” has reached what he termed a “substantial” settlement.

Kahn, who represented Andrew Daulton Lee at his trial on charges of helping childhood friend Christopher J. Boyce sell classified documents to the Soviets, objected to what he said were “fabricated” scenes in the 1985 movie that depict Kahn urging his client to inform on drug suppliers in exchange for reduced charges and later helping Lee escape to Mexico.

Orion officials conceded the scenes weren’t strictly kosher but argued that Kahn had signed a release authorizing a “factual or fictional” portrayal of himself in exchange for $15,000.

“Of course I signed a release, but I didn’t sign a release to be slandered,” said Kahn, who’s still angry. “I really intend to make a public issue of this. They advertised the movie as a true story--and they knew it wasn’t true.”

Orion attorney Albert F. Smith said the decision to settle was based on “pragmatic considerations” but declined to comment further.