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There is no prosecutor involved here. She is being civilly sued for defamation. She might go to jail if she defies a subpoena to turn over internal records that include confidential sources.
Overall it seems like the ex governor might actually have a leg to stand on in court, but the bar for defamation is high. I think it’s unlikely that, if this went to court, the ex governor would win. I expect this to be settled before actually being argued in court, though.
You’re right, it does. He’s pretty unlikely to win in court, but lawyers are expensive. I expect they’ll reach a settlement just to avoid paying lawyers. Journalists aren’t known for having deep pockets to pay legal fees, unfortunately.