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If the neighbor is saying untrue things about you, you have a potential claim for "defamation", and possibly other claims based on the law of the state you are in. So, you "can" file a lawsuit but "should" you is the question you need to ask. Do you have lots of money to pay a lawyer? Have you suffered any provable financial harm? Does your naughty neighbor have any money that you could collect if you were lucky enough to win the lawsuit? If the answer to any one of those questions is no, then forget it. It's probably best that you prove to your other neighbors that you are not trouble by being a good neighbor to them. Let them see you as a good person and they will decide the truth for themselves.

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Q: Can you file a lawsuit if your neighbor goes around telling other neighbors to stay away from you because you are trouble?
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