The movie depicts Scruggs, an Atlanta Journal-Constitution newspaper reporter, offering sex for confidential information from an FBI source about the case.
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Its clear the FBI agent thinks the offer was at least potentially in exchange for sex, but it seemed ambiguous as to whether they were going to have sex regardless.
My understanding is that in real life the reporter had sex with the FBI agent, and the FBI agent leaked the info to her. The disputed point was whether it was a trade, or just a regular hookup.
Even if a regular hookup, its damn unethical of both parties.