Stories based on news: are they allowed?

I just read a story on the news that made me go: Oh my, this would make a great short story. I've never written a story based on a news article before. So I'm wondering, will someone sue me? Am I infringing some copyright law?

I'm not planning to write an exact copy, though anyone who reads the story would make the connection with the original story.

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Stories based on news: are they allowed?

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