What is the name of your state (only U.S. law)?
... business ... had a number of negative reviews on Yelp ...
... media (online newspaper) and Police ... discussed at length on this forum website ...
... a link to the ... newspaper ...
... altered the Yelp review links ... other ads ... more malicious and made up ...
First, whoever the defendant is, he needs an attorney to help him with his defense. I recommend he see an attorney well-versed in defamation law and he should do this sooner rather than later.
Linking to defamatory material spreads defamatory material to others. Republishers of defamatory statements can be found as guilty of defamation as the original publisher of the defamation. Falsely stating or implying someone has committed illegal acts, or linking to information where such false statements or implications are made, not only can get a person sued, the person could easily lose the suit.
There is obviously a lot for the business owner to use as support for his lawsuit, with the impersonation and the unfair competition claims. These along with the defaming of a business and the defaming of a business owner can result in an extremely high award of damages, should the business owner win his suit (and, from what has been posted, there is a good chance he can).
Again, the defendant needs an attorney. This is not the type of lawsuit he should on his own attempt to defend against.
Thank you, by the way, for not posting any links on the board. They would only be reported and deleted.