Quaden Bayles, who drew global attention after he was bullied for his dwarfism initiated legal action against a newspaper columnist after she alleged he had faked his distress in a video which went viral.
His mother, Yarraka Bayles, said she had posted the clip to raise awareness.
After the viral clip an online campaign was set up by a US comedian Brad William who had the same dwarfism condition of Achondroplasia to send Quaden on a trip to Disneyland.
It attracted celebrity support and raised more than US$ 216,000 within days. The Bayles later pledged to give all the money to charity.
Australian columnist Miranda Devine suggested it was a “scam” over subsequent donations.
She had retweeted one conspiracy theory to her 70,000 followers. She added a comment: “That’s really rotten if this was a scam. Hurts genuine bullying victims.”
She alleged that Quaden’s mother had been “coaching the kid to say those things that no nine-year-old would say”.
In the confronting six-minute video that originally went viral, Quaden’s mother describes the relentless bullying experienced by her son every day. The family, who are Aboriginal Australian, live in Queensland.
The family filed a defamation lawsuit against Devine and her employer, News Corp Australia
News Corp Australia in March declined to apologise over Devine’s tweets.