Atlantic City Mayor Marty Small Sr. and his wife, La’Quetta Small, have settled a slander lawsuit against political operative Craig Callaway, who must publicly admit that he lied when he accused the Smalls of allowing a child molester to abuse children in their home, the mayor said Thursday through his attorney. According to the Press of Atlantic City, Callaway attorney Seth Grossman did not return a call for comment, and Callaway could not be reached for comment.