A defamation case has been ongoing between former senator Linda Reynolds and Brittany Higgins, stemming from social media posts Higgins made in 2022-2023 that accused Reynolds of mishandling a rape allegation and other defamatory claims.

Reynolds has initiated bankruptcy proceedings against Higgins in the Federal Court to recover damages awarded for defamation, with Higgins and her husband served with proceedings after Higgins failed to comply with a bankruptcy notice.

Reynolds's legal bill has exceeded $1 million, and a creditor's petition was filed against Higgins on October 10, the same day bankruptcy papers were served to her husband, David Sharaz.

The legal dispute has led to significant financial strain, with Reynolds's legal team confirming her costs have surpassed $1 million.

The court found Higgins's posts to be defamatory, ordering her to pay Reynolds damages of $315,000 plus legal costs, and Higgins is appealing these orders.

Higgins's social media campaign included allegations related to a 2019 rape in Reynolds's office by colleague Bruce Lehrmann, a case which was discontinued after juror misconduct, though Lehrmann was found to have raped Higgins on the balance of probabilities in a separate civil case.

Higgins had offered Reynolds a $200,000 settlement before the trial, which was rejected, and her attempt to cap legal fees was also denied.

Higgins's allegations and media coverage led her to speak publicly from Parliament House, citing feelings of professional and personal isolation amid the political sensitivity of her case.

The court's detailed judgment confirmed Higgins was raped by Lehrmann in 2019, a finding Lehrmann is now appealing, and the case involved allegations of false statements in media interviews.

Reynolds sued Higgins over social media posts deemed defamatory, resulting in damages and an order for Higgins to pay 80% of Reynolds's legal costs, which Higgins is also appealing.

The court found that Higgins's Instagram story criticizing Reynolds was defamatory, but Higgins successfully defended other posts with honest opinion and fair comment.

The defamation case is linked to Higgins's allegations of sexual assault in 2019, which became a political issue for Reynolds and the Morrison government before the 2019 federal election.