On May 30, 2008, John Grogan filed a lawsuit in California state against Ralph Hilliard, John Trimarco, Joseph Paolella, Jack Trimarco & Associates Polygraph/Investigations, Inc., Wordnet Solution, Inc., and several John Does alleging defamation, invasion of privacy (false light), and intentional infliction of emotional distress.  

In his complaint, Grogan alleged that Paolella wrote a letter to Trimarco which contained false, malicious, and libelous statements.  Grogan also alleged that Trimarco called into a radio show that Grogan was a guest on and made several false and defamatory statements.  Finally, Grogan alleged that Hilliard created two websites, PolygraphPlace.com and TheTruthAboutGrogan.org, and used them to repeat the statements Trimarco made during the radio show, to make additional false and defamatory statements, and to link to other defamatory content.

In June and August 2008 respectively, Paolella and Trimarco filed motions to strike the complaint under California's anti-SLAPP law (Cal. Code Civ. Proc. § 425.16).  Trimarco argued that Grogan qualified as a public figure and that the statements involved were statements of opinion.  In August, Hilliard and Wordnet Solutions filed an answer, asserting several affirmative defenses.

In October 2008, the court issued a tentative ruling on Trimarco's motion to strike, finding that Grogan had produced evidence sufficient to avoid dismissal under the anti-SLAPP law. 

The trial is currently scheduled for August 2009.

UPDATE: 

On or before 5/28/2009, the case settled, according to AntiPolygraph.org and TruthAboutGrogan.org

"The Parties to the Lawsuit filed by Mr. Grogan against Ralph Hilliard and others as entitled Grogan vs. Paollela et. al. Los Angeles Superior Court Case No.: BC391778 ("Lawsuit") has been settled by and between Mr. Grogan, Mr. Hilliard and Mr. Hilliard's Company, Wordnet Solutions, Inc. for an undisclosed amount and that no party in any way admits liability or wrongdoing of any sort and the parties have agreed to settle to avoid the cost and inconvenience of litigation and such settlement shall not constitute an admission of liability by any party".