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They may have been unaware what was going on when the picture was taken, but now it appears they were a participant. Even if they're outright lying and were definitely participating, can you prove it? If not, here comes the defamation lawsuit
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Er... I don't think so. IANAL, but defamation is a REALLY HARD case to win. You have to have PROOF that the shit said about you has no merit, and it has to be decisively damaging to you. It cannot be implied, from what I know.
So I don't think defamation in the example you give is too much of a worry, but hell.. what the fuck do I know? ;)
-Phil