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Virginia fraternity sues Rolling Stone for $25M

A University of Virginia fraternity on Monday filed a $25 million lawsuit against Rolling Stone related to the magazine's 2014 article that claimed a brutal sexual assault occurred at its house.

The Phi Kappa Psi chapter's defamation claim cites damage to its reputation after Rolling Stone published the story, which alleged a freshman woman was gang raped during a 2012 party as part of a house hazing ritual. Investigations by both local police and the journalism school at Columbia University determined the specific incident never happened.

"The fraternity chapter and its student and alumni members suffered extreme damage to their reputations in the aftermath of the article's publication and continue to suffer despite the ultimate unraveling of the story," the fraternity said, in a statement.

Students walk past the Phi Kappa Psi fraternity house on the University of Virginia campus in Charlottesville, Virginia.
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Students walk past the Phi Kappa Psi fraternity house on the University of Virginia campus in Charlottesville, Virginia.

Phi Kappa Psi claims its brothers have been physically threatened and its house has been vandalized since the story's publication. The magazine retracted the report in April, and Managing Editor Will Dana announced in July he would resign.

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Three alumni of the fraternity previously sued Rolling Stone in July.

Rolling Stone declined to comment.

CNBC's Ryan Ruggiero contributed to this report