This statement was rated "Pants on Fire" by PolitiFact.
Here's a link to the truth plus snippets below.
Report finds Palin violated ethics laws
Alaska's 12-member Legislative Council — which has a Republican majority — decided to look into the matter, and in early August, they tapped independent investigator Stephen Branchflower to lead the probe.
Branchflower’s report, released Oct. 10, concluded that while Palin was within her rights to fire Monegan, she "abused her power" and ran afoul of state ethics laws in seeking to settle a score with Wooten.
The Palin camp predictably lambasted the report as a partisan smear.
Less predictable was the reaction from Palin herself. "The truth was revealed there in that report that showed there was no unlawful or unethical activity on my part," Palin told reporters on Oct. 11.
Except that’s not what the report showed.
"Finding Number One" of the report is "that Governor Sarah Palin abused her power by violating Alaska Statute 39.52.110(a) of the Alaska Branch Ethics Act."
Specifically, the statute reads: "The legislature reaffirms that each public officer holds office as a public trust, and any effort to benefit a personal or financial interest through official action is a violation of that trust."...
"[T]he issue here is Palin’s characterization that the report concluded that she did not do anything ethically wrong. The report concluded just the opposite. The report says she did abuse her authority and she did violate state ethics laws. By saying otherwise repeatedly, in what seems to be a deliberate attempt to mislead or confuse voters who don't know the facts, Palin isn't just wrong, she's Pants on Fire! wrong."