Defamation is a legal concept often associated with lawsuits by celebrities against tabloids claiming that stories about them were fabricated and that their reputations were tarnished.

Similar lawsuits are commonly brought against the news media by public figures and others who claim that news coverage about them contained harmful and untrue statements.

The same legal principles of defamation apply to all types of businesses, not just publishers and the news media. Private companies and individuals are subject to defamation claims arising from all forms of communications, whether in written form or in verbal statements.

Defamation refers to two types of claims based on false or untrue statements made to a third party. If these false statements are made in writing, the form of defamation is called libel. If the false statements are verbal, it is called slander.

Libel claims are not limited to the written word. They also arise from other forms of expression, such as pictures and signs. False statements made on television or radio also give rise to libel claims.

Defamation laws are designed to protect the reputation of the person or company about whom the false statement has been made. It is generally not considered defamatory unless the false statement is likely to lower the public’s estimation of the person in question.

In some cases, however, injury to reputation does not need to be proven. Some statements are automatically considered defamatory if they are not true. For example, it may be defamatory to claim that someone committed a crime or engaged in serious sexual misconduct if it can be shown that the claim is not true, even if the speaker thought it was.

False accusations that someone has engaged in serious misconduct in their business, trade or profession can also be defamatory. These false statements include false claims about a company’s financial stability or reliability. They also include claims about a person’s credibility or competence as it relates to his business.

The law treats pubic and private people differently. Defamation is easier to prove if the false statements are made about a private person than a public official or public figure.

When constitutional free speech rights are at issue, the legal standard for proving defamation changes. The courts recognize the public’s interest in a free flow of information about public officials and public figures. Thus, public figures must show that whoever made false statements about them either knew that the statements were untrue or they acted with reckless disregard for the truth.

The reason public figures are subject to this heightened standard is the belief that politicians and others who want to become publicly known give up some of their privacy. Increased public scrutiny comes with public recognition.

Some public figures, such as television personalities, have a unique ability to correct misstatements by refuting the accusations on the air. The same is true for public officials.

There are several defenses to defamation claims. The truth is always a defense. No one can recover damages for defamation based on a true statement about them, no matter how unflattering or negative a light it casts on them.

Expressions of opinions, rather than statements of fact, are protected under the First Amendment of the U.S. Constitution and are not subject to claims of defamation. Because opinions are neither true nor false, they cannot form the basis for a defamation claim.

Certain statements are privileged and not subject to the defamation laws. Official statements made in government proceedings are not subject to defamation claims. Neither are statements made by parties and witnesses in court proceedings.

In most states, the person or company who has been defamed can sue for actual money damages, as well as emotional distress and pain and suffering. In particularly egregious cases, they may even recover punitive damages.