If they misquoted the prosecutor, it's a whole other story. They could be held liable for that, possibly both by the prosecutor and the defendant. Malice is not necessary except for public figures. But, proving that the an incorrect quote caused damage to the person's reputation, especially if it was corrected quickly, still could be difficult.
Then we're all in agreement, except for BTC, who said actual malice was required.
As for the alternate situation, where the prosecutor was quoted correctly, but misspoke, I think we're in agreement, too. In that case I believe it depends on the wording, which is why you said that things needed to be worded correctly. If the article said "The Prosecutor said 'Blah Blah'" with no additional commentary, and the prosecutor actually said that, then the article was factual and accurate, even if what the prosecutor said was incorrect. If they later learn that what the prosecutor said was inaccurate, I still think it's appropriate to retract it.
Per BTC's most recent post, Drake did not plead guilty of theft. That was my conclusion, based on the quick retraction by the News, however it leaves open the question of whether or not the reporter quoted the Prosecutor accurately.