In the New York case, the plaintiff, Mark Yonaty, had argued he suffered real damage from the false rumor that he was gay or bisexual. See Yonaty v Mincolla (2011 NY Slip Op 51037(U)). A mid-level appeals court on Thursday wiped out decades of rulings, including its own, to say that society no longer treats false comments that someone is gay, lesbian or bisexual as defamation. The court ruled, without defamation, there is no slander.
For full article see: Calling Someone Gay Isn’t Slander, New York Court Rules.