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A federal appeals panel revived Gennifer Flowers' defamation suit accusing Hillary Rodham Clinton of masterminding a campaign to discredit her claim of an affair with Bill Clinton.

Flowers Sued Clinton, Carville and Stephanopoulos for Conspiracy and Defamation “Clinton Smear Machine” Will Be Exposed in Court

(Washington, DC) Judicial Watch, reported that the Ninth Circuit Court of Appeals reversed a lower court and ruled that the lawsuit for its client Gennifer Flowers can now proceed against Hillary Clinton, James Carville, and George Stephanopoulos.

The 9th U.S. Circuit Court of Appeals ruled 3-0 that Flowers could try to prove the former first lady, now a senator from New York, conspired against her with two presidential aides, George Stephanopoulos and James Carville. Still, the court said Flowers faces an "uphill battle" and must convince a Nevada judge there is evidence of a conspiracy before the case could proceed to a jury.

The controversy dates to 1992, when a supermarket tabloid wrote that Bill Clinton and Flowers had an affair while he was Arkansas governor. Bill Clinton denied the accusations, so Flowers held a news conference to play audio tapes she said were of secretly recorded intimate phone calls between them.

Carville, now on CNN's "Crossfire," and Stephanopoulos, now an anchor on ABC's Sunday morning program "This Week," said on CNN's "Larry King Live" that Flowers had doctored the tapes. Stephanopoulos repeated that allegation in a book.

The two aides maintained they were shielded from defamation claims because they were commenting on news accounts.

Flowers said news accounts that the tapes were doctored were false. Her lawsuit says Stephanopoulos and Carville knew or should have known they were false, and that they and the former first lady conspired to generate the news reports.

"A defamatory statement isn't rendered nondefamatory merely because it relies on another defamatory statement," Judge Alex Kozinski wrote in Tuesday's opinion. "In this case, the truth of the news reports on which defendants claim to have relied is disputed."

The senator's attorney, David Kendall, said "the case is just as frivolous as it always was." Stephanopoulos' publisher, Little, Brown and Co., said it is confident that he "will prevail in this action." Carville's attorney did not return phone messages.

The 1999 case, filed in Nevada, was dismissed two years ago by U.S. District Judge Philip Pro, who said it had been filed too late and did not state any claims that could prompt legal action.

Larry Klayman, Flowers' attorney, said he will seek unspecified damages when the case returns to court. "We allege Hillary Clinton was the mastermind of them uttering the words that the tapes were doctored," Klayman said. "They destroyed her."

Flowers, a former Nevada lounge singer, now lives in New Orleans and runs a restaurant with her husband, Klayman said. But along with that victory comes a new challenge. Our client, Gennifer Flowers, won a unanimous court ruling ordering that her defamation and conspiracy case against Hillary Clinton, James Carville and George Stephanopoulos be heard in court. Recently we won a similar victory for Dolly Kyle Browning, another abused women, against Bill Clinton.

More than 10 years after Gennifer Flowers was defamed by Hillary and the Clinton goon squad, she is one step closer to winning justice. It has been a hard-fought battle that was very expensive. And, we still have a ways to go. To win that verdict against Hillary and company requires more legal preparation and a trial next year.

As part of our effort in preparing for a jury trial, we will be able to force Hillary Clinton, James Carville and George Stephanopoulos to answer tough questions under oath. When the truth comes out – and we will be sure that it does -- Gennifer Flowers will be vindicated and win a great judgment.

You and I know the type of people Bill and Hillary Clinton are. You know their plans include recapturing The White House with Hillary as our next President. Of course, Judicial Watch isn’t involved in promoting the election or defeat of ANY candidates, but we are 100% committed to seeing that the Clintons are brought to justice and that Gennifer Flower’s good name is restored.

My friend, sadly, justice is not swift. And were it not for you and Judicial Watch, it would not be certain.

Can you help us proceed with this critical case? We are non-profit and all of our work is made possible through the generous tax-deductible contributions of patriotic individuals such as you. Gifts of $25, $50, $100 or even $500 all help. Your on-line contribution right now goes to work instantly to help. Please CLICK HERE to help. Prosecuting Hillary Clinton, James Carville and George Stephanopoulos for Gennifer Flowers will cost more than $265,000 over the next few months. I’m sure you understand our need for help. When you take on the political elite, you need a lot of resources to prevail.

Thank you again for all you do to help. Larry Klayman, Chairman and General Counsel