Question to all and is there a case here?

A friend of mine had a recent reference check done by their current employer. The former employer had first disclosed to the new employer that the employee in question had never worked for their establishment (which is not the case as the employee had been with the company for 20 plues years). It appears the former employeer is having hard feelings about the former employee leaving.

The former employer proceeded to bash the creditbilty and name of the employee in question by adding that their performance and attendence were poor and would not recommend them for any position.All of which are entirely false as the former employee had written documents from the previous employer praising the skills and abilities of the employee.

I know this is hersay, however, the current employer must document all conversations word for word regarding what had been discussed.....

The employee in question now feels their creditbility with the new employeer is shot, their name bashed within the industry, not to mention the emotional stress the employee is feeling and the other possible jobs that they may have lost due the statements noted above.

The question is, what legal rights does the employee have to clear their name and what can be persued for damages, as well has the cost for damages?

Any insight is appricaited.

Thanks yall,

Vader from Texas.