Model/actress/producer Zeta Graff filed a lawsuit earlier this summer, alleging Hilton made-up stories of Graff's jealous and criminal behavior to the New York Post newspaper.
Graff briefly dated Greek shipping heir Latsis last year, several months before he began his ill-fated relationship with Hilton who called off their four-month engagement last month.
The slander and libel lawsuit reads, "For motives which are not yet entirely clear, defendant Paris Hilton and others recently caused a number of vicious lies about Ms. Graff, a professional model, actress and film producer, to be published in the New York Post."
Both Graff and Hilton's attorneys met in a Santa Monica, California courtroom on Monday for a preliminary hearing. Hilton's lawyer is yet to make an official response to the suit, claiming they are still investigating the incident.
The judge has set the next court hearing for January.
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