Final answer:
The tort of making a false statement damaging someone's reputation is known as defamation, which includes libel and slander. Public officials must prove 'actual malice' as per the New York Times v. Sullivan case. Private individuals have less stringent standards, based on the Gertz v. Welch case.
Step-by-step explanation:
The tort that creates liability when one makes a false statement about a person that harms the person's reputation is known as defamation. This includes both libel, which is written defamation, and slander, which is spoken defamation. To protect the interests of public figures, the U.S. Supreme Court has established that public officials must demonstrate actual malice, as set out in the landmark case New York Times v. Sullivan. This requires proving that the false statement was made with knowledge of its falsity or with reckless disregard for the truth. For private individuals, the standards are less stringent, but they still need to prove that the statements were made with some degree of fault, according to Gertz v. Robert Welch, Inc. Furthermore, Curtis Publishing Co. v. Butts affirms that news organizations may be liable when disseminating unchecked allegations about public figures.