Suing clients is usually bad for business and should be a last resort. You need to have your company attorney send them a letter informing them that their statements regarding releasing the information is false and provide them with some evidence that the other company actually came up with the idea before your client. The lawyer will then tell them to cease and desist making such false statements or you would consider suing them for slander/defamation. Generally this works and the client will stop, but if not then you need to decide if you have to resort to suing.
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