Travis County prosecutors had conceded a key prosecution witness, a doctor who provided the only physical evidence at Keller's 1992 trial, has since recanted, the Austin (Texas) American-Statesman reported. The doctor's mistake was based on inexperience with pelvic exams.
Keller, who turned 72 Friday, walked out of Travis County Jail, where he had been transferred pending release.
His former wife, Fran Keller, 63, also has been freed. Both have posted bonds, the newspaper said.
The couple faced 48 years in prison after three children at their home-based Southwest Austin day-care alleged sexual abuse and satanic rituals that included corpses, dismembered pets and babies, the newspaper said.
Lawyer Keith Hampton argued that the allegations at Fran's Day Care were part of a national hysteria driven by gullible or agenda-driven therapists, the newspaper said.
Hampton said he will next try to prove the couple's innocence in court.
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