This article, written by two lawyers, defines defamation, discusses the basic law of defamation and stigma, and focuses on recent case law on this topic. The cases are only a sample of the numerous cases that school districts across the nation face on the issues of defamation and stigma. The following topics are included in the legal review: the requirement of falsity, opinion as a defense to an action in defamation, publication communicated to a third party, teachers as public officials, defense as privilege, what constitutes a stigmatizing charge, deprivation of a liberty interest, employee pleading the falsity of charges, the necessity of publication, and due process. (JAM)