On February 21, 2008, in the midst of John McCain's campaign in the 2008 Republican presidential primaries, both The New York Times and the Washington Post published articles detailing rumors of an improper relationship between John McCain and lobbyist Vicki Iseman.
According to the New York Times story, McCain, who was a member of the Senate Commerce Committee during the period when Iseman was lobbying the committee, developed a close personal relationship with Iseman. The New York Times came under intense criticism for the article because of its use of anonymous sources and its timing.
In December 2008, Iseman filed a US$27 million defamation lawsuit against The New York Times, alleging that the paper falsely communicated an illicit romantic relationship between her and McCain.The Times said they "fully stood behind the article" and the story was "true and accurate". The lawsuit was settled in February 2009 with no money changing hands between the parties. However, as a condition of the settlement the New York Times printed an unusual "Note to Readers" stating that the Times had not intended to allege any affair.
McCain wrote letters in 1998 and 1999 to the Federal Communications Commission encouraging it to uphold marketing agreements allowing a television company to control two stations in the same city, a position which Iseman had been advocating on behalf of her client Glencairn Ltd. (now Cunningham Broadcasting). McCain also introduced a bill to create tax incentives for minority ownership of stations, which several businesses Iseman represented were seeking.
In February 1999, McCain and Iseman attended a small fund-raising dinner with several clients at a Miami- area home of a cruise - line executive, then flew back to Washington along with a campaign aide on the corporate jet of Paxson Communications (now ION Media Networks), one of her clients. Later in 1999, Iseman requested McCain to write to the FCC urging it to reach a speedy decision in a case involving Paxson Communications. Iseman, according to an email sent to the Times, provided McCain's staff with the information to write the letter. McCain's two letters to the FCC resulted in William Kennard, the FCC chairman, issuing a rare public rebuke to McCain for his interference in FCC deliberations.