Model/actress/producer Zeta Graff filed a $10 million lawsuit last summer, alleging Paris Hilton made-up stories about Graff's jealous and criminal behavior and supplied them to the New York Post newspaper.
A source tells the publication, "Hilton made a deposition in the slander lawsuit, and admitted she planted a false story in the press in which she claimed Graff attacked her in a London nightclub.
In a statement, Graff says, "Hilton will learn a valuable lesson about what happens when you try to ruin another person's reputation. She made a number of false statements about me, and she repeatedly lied under oath during her recent deposition. I look forward to her explaining all of this to a jury."
Hilton's publicist Elliot Mintz says, "In view of the fact that it's an ongoing matter, I'm not in a position to make any comment."
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