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This is a difficult situation. You should consider however, retaining an attorney to write a cease and desist letter to her - assuming her statement is not true. The letter should generally state that she is to stop telling mistruths about you immediately and that continuing the same will make her subject to a lawsuit for libel and/or slander for unspecified damages. If that doesn't stop her, then you'd unfortunately have to sue her, which is ridiculous but the only way to legally stop her.
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You're probably looking at $200-$300 an hour. I'd suggest that the attorney try to get affidavits from the witnesses in your favor. No more than 5 hours writing the cease and desist I'd guesstimate and a couple hours with the witnesses.
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