Final answer:
The term for a false statement that harms someone's reputation is 'defamation', which encompasses both libel and slander. Public figures must prove 'actual malice' to win a defamation suit, meaning the statement was made knowingly false or with reckless disregard for the truth.
Step-by-step explanation:
The legal term for any false statement that harms an individual's reputation is known as either libel or slander. Libel refers to written defamatory statements, while slander refers to spoken ones. Under U.S. law, particularly following the New York Times v. Sullivan case, there is a higher standard for public officials or public figures to claim defamation. They must prove that the false statement was made with actual malice. This means the statement was made with knowledge of its falsity or with reckless disregard for the truth. Cases such as Curtis Publishing Co. v. Butts reaffirm that the news organizations may be liable when disseminating information about public figures if the information was recklessly gathered and unchecked. This legal landscape ensures that opinions and fair criticisms are not stifled by the threat of defamation suits, while also providing recourse for those whose reputations are harmed by false statements presented as fact.