Employment Law Questions? Ask an Employment Lawyer.
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Based on those facts, you can sue her for defamation of character for bashing you, and invasion of privacy for using your likeness for commercial purposes without your consent.
If I were you, I'd retain a local attorney to send a cease and desist letter. That will likely put a stop to the use of your image. However, if you can demonstrate lost profits, then you may wish to sue right away even if the bashing and use of your photo stops.
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You can send a cease and desist letter at any time. There is no time limit, and it would be mailed. Text messages can be used as evidence no matter how old they are. There is no time limit on that either. I'll point out, however, that text messages must be properly authenticated per the rules of evidence. Accordingly, if a text message is not allowed in a case, it's not because it is a text message or older than 5 years. Rather, it would be because the person trying to get it admitted did not comply with the rules of evidence. This is why it is imperative to have an experienced attorney handle litigation. When plaintiffs handle litigation themselves, there is a very good chance that they will not be able to get all of their evidence admitted simply because they don't understand the rules of evidence.
As for the phones and email accounts, I'm sorry to say that I don't know if there is a way check if they were hacked or if something linked to them. That is not really a legal question, and is more of an IT question. My suggestion would be to visit a local computer service center or IT center to ask for help on that issue.
I'm sorry that I couldn't answer your very last question about the hacking, but I hope that my other answers were helpful. Please remember to provide positive feedback. Thank you.