Fairey Admits ? Shepherd Fairey vs Garcia trial

All right! Finally, more on A.P.'s lawsuit against Shepherd Fairey (and his countersuit against them). The latest from the artist:

I sincerely apologize for my lapse in judgment, and I take full responsibility for my actions, which were mine alone.

According to the NYT, he's just owning up that the photo he said was the source wasn't the source. And that he "destroyed evidence and created false documents to cover up the real source." Understandably, having been left out of this bit of information, Fairey's legal team from The Fair Use Project feels the need to withdraw from the case.
So, it's still game on - once he gets new counsel. Was it fair use? Copyright infringement? And did the photographer ever actually assign his copyright rights to the A.P.? This just gets murkier and more drawn-out, doesn't it?