It works if the law says that reputational damage trumps the fact that the statement causing the damage is true--or can't be proven to be false. Although the UK has made some changes in recent years, it's probably the best example in the West of a country where truth isn't necessarily a defense against a libel suit. https://en.wikipedia.org/wiki/English_defamation_law (And somewhat ironically given that US law has its roots in English common law, the US swings heavily on the side of free speech.)