You absolutely do have the right to sue for defamation of character. Copy all of the offensive information and print it out. Then, send her an email demanding that she cease and desist from any further activity. If she continues, then you can sue her for punitive damages. Then, get yourself a good lawyer who can handle the case. Be prepared to prove damages. That is, get medical information from your treating doctor(s) who have to treat you for the emotional aspects of having your name dragged through the mud. Good luck. Such a claim is not usually covered by insurance, because it is an intentional act. So, you may get a judgment, but unless she has any money or other assets, you are going to have a problem collecting the judgment.
Answered on Aug 14th, 2012 at 5:38 PM